Russia faces 15 billion dollar heatwave losses: economists

MOSCOW — Russia is starting to count the losses of the worst heatwave in its history, with economists warning the weather may cost the country up to 15 billion dollars and undercut a modest economic revival.

While it may take months for the government to tally the damage caused, several economists said the disaster might cost Russia between 0.5 percent and 1.0 percent of this year's gross domestic product (GDP), or roughly 7-15 billion dollars.

Alexander Morozov, chief economist for HSBC bank in Russia, said the abnormal heatwave, including a severe drought, forest fires and smog, will be a significant factor eroding growth as Russia recovers from the economic crisis.

"Economic growth in Russia is slowing and the heatwave will lead to a further slowdown," Morozov told AFP, estimating the immediate losses from the fires and the smog at 1.0 percent of this year's GDP, or around 15 billion dollars.