MOSCOW--Russia's economy, hit by Western sanctions, stopped growing in September, data from the economy ministry showed Wednesday.

Russia this year is on track to post its lowest growth since 2009. Russia's standoff with the West over the Ukrainian crisis adds downside pressure on the economy as sanctions and geopolitical uncertainty fuel capital flight and kill investment activity.

Alexei Ulyukayev, Russia's economy minister, said that in the first nine months of 2014 the economy grew by 0.8%, Interfax news agency reported.

Official data showed last month that in the January-August period gross domestic product expanded by 0.8%, suggesting that economic growth halted in September.

The government expects the economy to grow by 0.5% this year compared with 1.2% in 2013 and nearly a decade of annual average growth of some 7% seen before the global financial crisis.

The ruble's drop to all-time lows this month carries additional downside risks for economic growth as companies usually stop investing and start looking for ways to hedge their funds at times of increased exchange rate volatility.

Pressured by capital outflows on the back of Western sanctions and domestic demand for dollars and euros, the ruble was last hit by a slide in oil prices beyond $90 per barrel, which is more than $10 below an average price envisaged by Russia's 2014 budget plan.

Russia's Energy Minister Alexander Novak said Wednesday he hopes that oil prices will recover to the range of $90-$110 per barrel in the midterm, Interfax reported.

Write to Andrey Ostroukh at andrey.ostroukh@wsj.com

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