Domestic farms have been unable to replace most of the food placed under the embargo by Moscow in response to Western sanctions, according to a report by the Central Bank.

      The agricultural sector producers enough poultry, port and potatoes while the market is facing a cut in beef, butter, fish and vegetables.

      “The dynamics of most macroeconomic indicators suggested that the Russian economy had passed the acute phase of the recession. However, it is too early to talk about steady trends for the economic activity recovery so far. The industrial output decreased slower than expected, as it was supported by export-oriented sectors and import substitution processes for certain commodity groups. The narrowing of investment demand slowed down as well due to the positive dynamics of capital investment in mining industries,” the report also says.

      “Inflation is expected to slow considerably in early 2016 because the consumer price hike of early 2015 will have been excluded from the calculation. According to Bank of Russia estimates, the imposition of external trade restrictions against Turkey from January 2016 will not have significant impact on inflation. Sluggish consumer demand in 2016-2017 and the pursued monetary policy will further contribute to lower consumer price growth,” according to the report.