Meltdown averted but six months on, Russians face economic pain

Vendors sell vegetables and other foodstuffs in a street in Izhevsk, Russia August 19, 2022. REUTERS/Alexey Malgavko

MOSCOW (Reuters) - Russia's economy has avoided the meltdown many predicted after Moscow sent its forces into Ukraine six months ago, with higher prices for its oil exports cushioning the impact of Western sanctions, but hardships are emerging for some Russians.

After predicting at one point that the economy would shrink more than 12% this year, exceeding the falls in output seen after the Soviet Union collapsed and during the 1998 financial crisis, the economy ministry now expects a 4.2% contraction.