Russian economy cooling, business sentiment points to possible recession - econ minister

ST. PETERSBURG. June 19 (Interfax) - The Russian economy is cooling and, based on business sentiment, it is already on the verge of tipping into a recession, Economic Development Minister Maxim Reshetnikov said at the Supply Economy - Growth Strategy in the Face of Modern Challenges session at the St. Petersburg International Economic Forum.

"According to the figures, we have cooling [in the economy]. But all our figures are a rear view mirror. According to current business sentiment, it seems we're actually already on the verge of moving into a recession," Reshetnikov said when asked by the moderator whether the Russian economy is in a state of cooling or recession.

"I am not saying that I predict a recession, but that we are on the verge of one, and what happens next depends on the decisions we make," he said, asked to clarify his comments about Russia tipping into a recession.

Reshetnikov said at the end of May that the situation then pointed to risks of overcooling in the Russian economy, while inflation was slowing down, and that it was therefore important for the Bank of Russia to make timely decisions on monetary policy.

"Because as things stand, we also see risks of an overcooling in the economy," he said previously.