Russia's economy set to shrink

President Dmitry Medvedev has warned that Russia’s economy will shrink by 7.5 per cent in 2009, but said intervention by the Kremlin had prevented a worse decline. The country, which relies massively on oil exports, has been hit by the massive slump in energy prices. Medvedev said his government had been surprised by the severity of the crisis in Russia, saying the decline was “very serious”.