Russia's economy contracted by 3.7% in 2015, according to preliminary figures published by the country's statistics service.
Retail sales plunged by 10% and capital investment fell by 8.4% in the economy's worst performance since 2009.
In contrast, Russian GDP increased by 0.6% in 2014.
The economy has been hit hard by the extraordinary collapse in oil prices, which have fallen by 70% in the past 15 months.
Sanctions imposed by the West after Russia annexed Ukraine's Crimea region in 2014 have also had an impact.




Prime Minister Dmitry Medvedev warned earlier this month that the fall could force Russia's 2016 budget to be revised.
President Vladimir Putin said in December that the budget had been calculated based on oil at $50 a barrel. Oil is trading at just over $30 a barrel.