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Putin hopes Russian subtle economic policy to be fruitful

December 19, 2013, 14:03 UTC+3 MOSCOW
1 pages in this article

MOSCOW, December 19. /ITAR-TASS/. Russian President Vladimir Putin hopes that a subtle economic policy of the country will be fruitful. Putin has made a statement to this effect at a major annual news conference in the Russian capital on Thursday.

The question over the steps in the economic sphere has arisen in the wake of the decision to invest some part of reserves from the National Welfare Fund in Ukrainian securities. “When we introduced the budget rule we continued to withdraw the money from the economy,” he said. The president noted that additional ‘unearned’ oil and gas revenues are “the injection of additional monetary funds in the economy.”

Thanks to accrued reserves, Russia “does not need to cut sharply social expenditure,” as this is happening in the European Union, the president noted. “The different situation has emerged in Europe and they have to cut sharply the expenditure in the social sphere,” he recalled

“Thanks to the amassed cushion of safety we have an opportunity not to curtail the expenditure and to invest the monetary funds in development,” Putin stated. “Meanwhile, we just not only invest these monetary funds in the economy, but (allocate them - Itar-Tass eds) for concrete issues, primarily infrastructure projects,” he noted.

The president recalled about three major projects, namely the development of the Baikal-Amur Railway Mainline, the Trans-Siberian Railway Mainline and a central ring road, which is being designed in Moscow Region. Putin noted that he had discussed these issues at the meetings with business people. “These projects will bring the multiplicative effect: (when the investment is made in these projects) the resources will be invested in development, the trains start running and these monetary funds yield a return,” he added.

“This cushion of safety (which Russia succeeded to create - Itar-Tass) also permits to pursue this subtle policy,” Putin said. “I hope that this will bring the proper effect,” he added.

The president also recalled that as the G20 presiding country Russia had to seek for a compromise between America and Europe this year. “The top priority in the Group of Twenty (G20) was that the world economy may overcome the crisis,” he recalled. According to the British-U.S. model, possible solutions envisage mild financial regulation related with the cheap money for the economy. The EU called for the budget consolidation, the cuts in budget expenditure and the leveling of macroeconomic indicators.

“This was no easy job for us to combine these positions in the G20 format so that the wolves are sated and the sheep are intact,” the Russian president added.

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