By Jonathan Davies

The Russian government has warned that its economy will fall into recession in 2015 as sanctions from the EU and US continue to prevent growth.

Russia's economic development ministry is predicting the economy will contract by 0.8% next year. Previous estimates forecast growth of 1.2%.

It also predicted that household income will fall by 2.8%.

"The current prognosis is based on a drop in GDP by 0.8% in 2015, against the previous prognosis of growth by 1.2%," deputy prime minister Alexi Vedev said.

It comes as Western economic sanctions, combined with falling oil prices, continue to make a huge impact on Russia's economy.

The EU and US have implemented a number of economic sanction on Russia, President Vladimir Putin's inner circle and its key business leaders, as a result of its involvement in the ongoing conflict in Ukraine.

The Russian economy relies heavily on the oil industry and the tax revenue it brings. With sanctions and falling prices taking effect, a gloomy picture is left for 2015.

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