Sanctions on Russia keeping inflation high

MOSCOW, Oct. 2 (UPI) —

The head of the Russian Central Bank said Thursday sanctions on the energy sector are getting in the way of efforts to control inflation.

The U.S. and European governments have imposed punitive sanctions on Russian energy companies Rosneft, Gazprom Neft and others in response to the crisis in Ukraine. In September, the European Bank for Reconstruction and Development said sanctions were taking their toll on the Russian economy.

"It’s already obvious that we will not reach our goal on inflation this year; according to our assessments, inflation will be around 8 percent," Russian Central Bank Director Elvira Nabiullina said Thursday.

The bank this year said it expected Russian inflation would be around 7 percent for 2014. In August, it said it was ready prop up some of the institutions burdened by sanctions pressure.

Exports of crude oil, petroleum products and natural gas account for nearly 70 of all Russian export revenues in 2013.

A report from the World Bank finds Russia’s export-based economy leaves it vulnerable.

"Current geopolitical tensions are adversely impacting" Russia’s trade relationships, the bank said.