Sberbank of Russia warns of risks associated with deterioration in the country's macroeconomic conditions, the lending institution said in an annual report for 2016 that was compiled in accordance with the UKLA requirements.

"The recession that lasted eight straight quarters has become the longest in the modern history of Russia as the national economy lost roughly 5% of GDP and fives years of development. However, a number of indicators show that the acute phase of the crisis is over, with the economy back on track for recovery," the report pointed out.

"The most likely scenario is the economy's further adaptation and GDP growth of 1.5-2% in the medium term. Alongside this, risks that the macroeconomic landscape may worsen prevail. Key risk factors are unfavorable price levels in the O&G market, and also new sanctions imposed against Russia," said the report.

At the same time, Sberbank views as positive the pace of the country's economic development in 2016.