The Russian economy will contract by 3% in 2015 and a further 1% in 2016, according to the IMF's January estimates, compared to an expansion of 0.5% and 1.5% respectively projected in the October estimate.

The IMF has also slashed its global growth forecasts mainly due to the increased challenges to emerging markets growth.

According to the Fund, the 55% decline in crude oil prices since September is the main event that had to be considered to recalculate the January estimates.

"The much weaker outlook in Russia reflects the economic impact of sharply lower oil prices and increased geopolitical tensions, both through direct and confidence effects," the IMF said.

"Russia's sharp slowdown and rouble depreciation have also severely weakened the outlook for other economies in the Commonwealth of Independent States group."

Other reasons were the impact of ongoing adjustments related to the global financial crisis, the sharp appreciation in dollar as well as depreciation in the euro and the yen, the IMF said.

It said in many emerging and developing commodity exporters, the projected rebound in growth is weaker or delayed compared with the October 2014 projections.

The growth forecast for Latin America and the Caribbean has been reduced to 1.3% in 2015 and 2.3% in 2016.

The impact of lower oil and other commodity prices on the terms of trade and real incomes is now projected to take a heavier toll on medium-term growth in such economies.

Lower oil and commodity prices also explain the weaker growth forecast for sub-Saharan Africa, including a more subdued outlook for Nigeria and South Africa.