Russia on course for 12% contraction 'as consumer spending and manufacturing take hit'    

Downturn reflecting effects of sanctions, inflation, and hikes in borrowing costs

Shell will write down up to €4.6bn following its decision to exit Russia.

Timely indicators since its invasion of Ukraine last month suggest the Russian economy will contract by 12% this year, a leading consultancy has said.

Capital Economics said indicators such as consumer spending and manufacturing output suggest "Russia’s economic downturn looks set to deepen in the coming months", reflecting the effects of sanctions, inflation, and hikes in borrowing costs.