Food and chemical industries are doing quite well and this is attributed to a much cheaper exchange rate and to sanctions Russian authorities placed, limiting the import of food from European Union countries.

Oleg Kouzmin, Renaissance Capital

When Western powers imposed sanctions on Russia the plan was to force Moscow to pull back its support for separatists in east Ukraine.

But it seems that the sanctions have not had the desired effect. 

While the economic measures have severely damaged the country's economy, they have failed to force President Vladimir Putin to shift policy. 

Now Putin says that Russia has weathered the worst of its economic troubles and is on the road to recovery.

So what are the challenges facing Russia? How are sanctions affecting Russia's economy and ordinary Russians? And can the Kremlin steer Russia away from economic crisis in 2015?

Oleg Kouzmin, an economist at Renaissance Capital, joins Counting the Cost to discuss sanctions and the future of Russia's economy.

Source: Al Jazeera