The Russian economy reportedly contracted just 2.1% last year, beating expectations of a major recession as rising commodity exports helped offset it the impact of US and European sanctions in the background of the Ukraine invasion.

The preliminary result was better than the 3% decline officials had expected in early autumn, reported Bloomberg. The number fell well short of the 10% drop some forecasters were predicting when the country began to be hit by sanctions.

Also read: The best penny stocks

Locko bank economist Dmitri Polevoi said he believed it was a good result. “But that’s all in the past. What matters is the future and there are still some reasons to recover. In the base case for 2023, we still see a small decline of 1% to 2%,” he said, according to the report.

The hardest-hit sectors are wholesale, retail, manufacturing and transport, the report said, citing the Federal Office for statistics. Mining, agriculture, construction and government spending have increased over the past year, she added.

According to Bloomberg Economics, the economy will lose $190 billion in gross domestic product by 2026 compared to its pre-war trajectory.

Oil: Russian exports of discounted crude and heating oil to China have risen to record levels as the reopening of the world’s largest energy importer gained momentum following the lifting of its Covid-Zero policies, called a Bloomberg report.

Total flows in January were at their highest level since the invasion of Ukraine a year ago, beating a record set in April 2020, the report said, citing a data intelligence firm Kpler.

Continue reading: Saudi energy minister says OPEC+ decisions are not politicized and are based on market fundamentals