"It will require cheaper credit and the rebound of domestic demand*, which will also take time," he explained.

"If the government can maintain conditions that are beneficial for domestic manufacturers, the situation might improve in the long run," agreed Dashkevich. "A complete import substitution in agriculture and the meat and dairy industries is impossible to achieve in one year. Probably, in three to five years, Russian producers will be able to strengthen their positions considerably."

"Most of products that used to be exported from Ukraine, including components for the defense industry, pipes and come food items, were substituted relatively effectively," added Dashkevich.

Positive Developments

While the Russian economy's prospects looked grim at the beginning of 2015, the situation stabilized somewhat in the year's first months and later began to improve.

The ruble, after losing nearly half of its value against the dollar over 2014, partially rebounded, and interest rates came down from their post-sanctions peak and are projected to go down further.

At the same time, exports — boosted by the still weak ruble — were up more than 50 percent year-on-year in the first months of 2015, which, to some degree, compensated for the decline in domestic consumption**.

Analysts say that, most likely, the crisis has already hit bottom, and they are pointing to positive developments.

"The main positive development is that, this year, despite the economic downturn, the economy has remained sustainable, which will lead to an overall stabilization next year," said Kuzmin, adding that, in 2016, small growth can be expected, along with a halved inflation rate, a cut in capital flight to a $60 billion figure, which is "normal" for Russia, and stability of the national currency.

Other experts are even more optimistic

"The economy has rather successfully adapted to new conditions caused by lower oil prices and problems with refinancing foreign debts," said Struchenevsky. "What is most important is that there is no longer a feeling of panic."

"The decline seems to be over," he went on to say. "Government finances are in order. The exchange rate has stabilized. The inflation rate and interest rates have begun to go down."

"Apparently, in the eternal contest of fear and greed, the latter is beginning to win,"

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