Russia's invasion of Ukraine will drag its economy back to 2007, wiping out 15 years of gains, finance experts say

15 years of economic growth in Russia will be wiped out by the invasion of Ukraine, according to an association of finance experts.

The prediction was made by the Institute of International Finance. The story was reported by the news agency.

The group said that the invasion would hurt Russia's finances. The economy would be dragged back to its previous size in 2007.

Three were the main ones.

• Companies pulling out of Russia and laying off workers.
• A collapse in exports thanks to sanctions.
• Talented Russians leaving the country.

Russia's economy would contract by 15% in 2022, and 3% in the following year, according to the group.

—IIF (@IIF) June 8, 2022

If countries in Europe stop consuming Russian oil and gas, the picture will get worse for Russia.

The EU agreed to stop most of the Russian oil imports by the end of the year, but said it would take a long time.

Russia is on the verge of a historic debt default because of difficulties in paying its foreign creditor after being cut out of the financial system. With demand for energy declining in many parts of the world, the country has had to offer fuel at huge discounts.

Russian receipts from imports increased after the invasion due to rising energy prices according to the IIF report.

Russia would only get a short-lived benefit from that phenomenon, and its isolation from Western markets would be much more significant, according to its experts.