--- description: Deputy Economy Minister Sergei Belyakov says the economy has taken a hit, in the first such admission since Moscow's intervention in Crimea title: Russian Official Acknowledges Economic 'Crisis' image: https://static.time.com/v3/assets/bltea6093859af6183b/bltba3163582f376b5b/698685e713c79f20f5191145/479219731.jpg?branch=production&width=3840&quality=75&auto=webp&crop=16:9 ---  * [World](/section/world/) ## World Update your preferences in [Account Settings](/account/preferences/) Close # Russian Official: We Admit It, Our Economy Is in Crisis  by [Dan Kedmey](/author/dan-kedmey/)  ## Dan Kedmey Update your preferences in [Account Settings](/account/preferences/) Close Mar 18, 2014 8:50 AM CUT  Pedestrians pass illuminated signs advertising foreign exchange rates for dollars, rubles and euros on a street in Moscow on March 17, 2014\. Russian stocks have slumped 14% this month as the Ukraine crisis intensified Pedestrians pass illuminated signs advertising foreign exchange rates for dollars, rubles and euros on a street in Moscow on March 17, 2014\. Russian stocks have slumped 14% this month as the Ukraine crisis intensifiedBloomberg—Bloomberg via Getty Images  by [Dan Kedmey](/author/dan-kedmey/)  ## Dan Kedmey Update your preferences in [Account Settings](/account/preferences/) Close Mar 18, 2014 8:50 AM CUT With the ruble sliding, stocks tumbling and forecasters warning of a recession, a Russian official wasn’t exactly breaking news when he acknowledged signs of an economic “crisis.” It was surprising, however, to hear an official using the _C_ word in public. “The economic situation shows clear signs of a crisis,” said Deputy Economic Development Minister Sergei Belyakov at a Moscow business conference on Monday. [According](http://www.reuters.com/article/2014/03/17/us-russia-economy-crisis-idUSBREA2G0RF20140317 "undefined") to Reuters, it marked the first official acknowledgement of serious trouble since Russian troops amassed along the Ukrainian border in early March. While Belyakov avoided explicit references to the Ukraine crisis, his comments clashed with the official narrative of Russian resilience. Most officials have shrugged off threats of international sanctions from Europe, the U.S., and, [as of today](http://abcnews.go.com/International/wireStory/japan-imposes-sanctions-russia-crimea-22950520 "undefined"), Japan. Deputy Prime Minister Dmitri Rogozin [asked](https://twitter.com/DRogozin/status/445566766941765632 "undefined") “Comrade @BarackObama” if “some prankster” helped draw up a list of sanctioned officials. Putin adviser Vladislav Surkov called the sanctions “a big honor for me,” [according](http://abcnews.go.com/blogs/headlines/2014/03/russian-deputy-pm-laughs-at-obamas-sanctions/ "undefined") to ABC News. Whether the laughter will continue will depend in part on the market’s reaction to the international squeeze on Russian assets. The uncertainty alone caused Russia’s MICEX Index to drop 7.6% last week, and [according](http://www.bloomberg.com/news/2014-03-17/russia-sees-economy-tipping-into-crisis-as-western-sanctions-hit.html "undefined") to Bloomberg, the ruble has dropped faster than all but a handful of currencies this year. But Russian equities hardly budged with the announcement of more sanctions on Monday, suggesting that investors might be in a holding pattern. Russia’s economy could stabilize if sanctions deliver more bark than bite, or better yet, negotiators defused the crisis. Nonetheless, forecasters are revising their growth estimates downward. VTB Capital [predicted](http://www.businessinsider.com/russias-deputy-economic-minister-warns-kremlin-economy-is-in-crisis-2014-3 "undefined") Russia’s annual growth would flatline at 0.0% on Monday, joining a growing chorus of downward revisions. The smart money is riding on more trouble to come. \[[Reuters](http://www.reuters.com/article/2014/03/17/us-russia-economy-crisis-idUSBREA2G0RF20140317 "undefined")\] ```json [{"@context":"https://schema.org","@type":"NewsArticle","@id":"https://time.com/28305/russia-crimea-economic-crisis/","mainEntityOfPage":{"@type":"WebPage","@id":"https://time.com/28305/russia-crimea-economic-crisis/"},"headline":"Russian Official: We Admit It, Our Economy Is in Crisis","datePublished":"2014-03-18T08:50:47.000Z","dateModified":"2026-02-21T06:49:03.877Z","description":"A Russian official has finally admitted that Moscow's provocative stance on Crimea was bringing an economic \"crisis\" to its door","url":"https://time.com/28305/russia-crimea-economic-crisis/","keywords":["Ukraine","russia","crisis","stocks","Sanctions","Crimea"],"thumbnailUrl":"https://static.time.com/v3/assets/bltea6093859af6183b/bltba3163582f376b5b/698685e713c79f20f5191145/479219731.jpg?branch=production&width=1200&quality=75&auto=webp&crop=1200:675&height=675","author":[{"@type":"Person","name":"Dan Kedmey","jobTitle":null,"url":"https://time.com/author/dan-kedmey/"}],"articleSection":"World","image":[{"@type":"ImageObject","url":"https://static.time.com/v3/assets/bltea6093859af6183b/bltba3163582f376b5b/698685e713c79f20f5191145/479219731.jpg?branch=production&width=1200&quality=75&auto=webp&crop=1200:675&height=675","width":1200,"height":675,"headline":"Moscow City Business District, OAO Gazprom And Kremlin Views Following Crimea Referendum","caption":"Moscow City Business District, OAO Gazprom And Kremlin Views Following Crimea Referendum","creditText":"Bloomberg—Bloomberg via Getty Images","representativeOfPage":true}],"publisher":{"@type":"Organization","name":"Time","url":"https://time.com/","logo":{"@type":"ImageObject","url":"https://time.com/images/logo.png","width":528,"height":156},"foundingDate":"March 3, 1923","sameAs":["https://www.facebook.com/time","https://www.instagram.com/time/?hl=en","https://twitter.com/time","https://www.pinterest.com/timemagazine"]}},{"@context":"https://schema.org","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"item":{"@id":"/section/world/","name":"World"}},{"@type":"ListItem","position":2,"item":{"@id":"https://time.com/28305/russia-crimea-economic-crisis/","name":"Russian Official: We Admit It, Our Economy Is in Crisis"}}]}] ```