With the sharp rouble depreciation and ensuing financial squeeze, Russia will fall into deeper recession than previously forecast, Swedish bank Swedbank said in a new report.

In the most likely scenario we pencil in a mid-to-high single digit GDP contraction in 2015, but risks are tilted towards a downside and more negative outcomes are possible.

Exports (and possibly investments) of the Baltic economies will suffer from the recent rouble depreciation, but household consumption and GDP will continue to grow in the most likely scenario. In this case, GDP growth in the Baltics will be somewhat slower than forecast before, but it will still be growth and not recession.