Russia’s GDP dropped 0.4 percent in August, according to a report by Russia’s Economic Development Ministry.

      The negative trend is down to the slowdown in the processing industry, wholesale trade, construction, and tax revenues.

      August also saw the inflation-adjusted personal income slide 1.4 percent while the inflation rate stood at 0.2 percent.

      Since the beginning of the year, inflation rose 5.6 percent while the economic growth hovers around 0.7 percent.

      This is higher than the official 2014 projections of the Economic Development Ministry and the Central Bank, which are 0.5 and 0.4 percent, respectively.

      Russia’s economy has lost its steam amid the lack of structural reforms and poor investment climate, a situation now exacerbated by the sanctions imposed by the US, the EU, Canada, Australia and Japan over Russia’s alleged role in the Ukraine crisis.