World News

Apr 16, 2014 6:18 AM by Associated Press

Russian economy slows amid Ukraine crisis

MOSCOW (AP) - Russia's economy minister says growth slowed to 0.8 percent in the first quarter due to uncertainty over the crisis in Ukraine.

Alexei Ulyukayev told parliament Wednesday that the situation had worsened because of "the acute international situation of the past two months," as well as "serious capital flight." More capital left the country in the first three months of 2014 than in all of 2013.

The figure fell far short of the ministry's earlier prediction of 2.5 percent growth.

Russian markets have been rattled by tensions between Moscow and neighboring Ukraine, where Russia annexed the Black Sea region of Crimea in March. Ukraine has accused Russia of supporting armed militants in the country's east, where pro-Russian activists have seized government buildings and police stations.

(Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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