(CNBC) Concerns that the crisis in Crimea could hit Russia’s economic prospects were raised this week by both the World Bank and the country’s own economy minister. But it seems that the country’s finances were already on shaky ground thanks to frail domestic demand and lack of structural reforms.

The World Bank has forecast the Russian economy could contract by up to 1.8 percent in 2014, depending on the shock to economic and investment activity following the country’s annexation of Ukraine’s Crimea region this month.

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