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The Guardian - UK
The Guardian - UK
Business
Phillip Inman

Russia’s services sector shrinks amid western sanctions over Ukraine

A shopper looks towards closed McDonald's and KFC restaurants at the Mega Mall in Khimki, outside of Moscow, Russia
Many western companies such as McDonald's and KFC have pulled out of Russia. Photograph: Konstantin Zavrazhin/Getty Images

Russia’s services sector has suffered the worst slump in activity since the Covid-19 pandemic hit in 2020 as consumers and businesses cancelled orders amid increasingly severe western sanctions after the invasion of Ukraine.

A closely watched business survey showed that new orders during March dived as restrictions on imports and exports began to bite and inflation raised the price of services at the fastest rate on record.

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