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Ulukayev: Inflation in Russia to be under 5%

"GDP growth is a bigger concern," Russia's Minister of Economic Development Alexei Ulukayev noted
Russia’s Minister of Economic Development Alexei Ulukayev ITAR-TASS/Mikhail Klimentyev
Russia’s Minister of Economic Development Alexei Ulukayev
© ITAR-TASS/Mikhail Klimentyev

MOSCOW, January 20. /ITAR-TASS/. Russia’s Minister of Economic Development Alexei Ulukayev forecasts the inflation in 2014 will not be above five percent.

“I believe, in 2014 we shall manage to keep the inflation at the rate of 5%,” he said in an interview with the Komsomolskaya Pravda daily, adding, “the target rate of 2013 has not been exceeded much, by only 0.5%.”

“Thus, we shall cope with inflation, while GDP growth is a bigger concern.”

“First of all, we should cut business expenses,” including in natural monopolies’ tariffs, he said.

“Secondly, the resources, the businesses gain from lower expenses, should be directed for development of production, not hidden in offshore zones.”

“And, thirdly, we should support the export. It is not correct to focus only on the domestic market, thought it is as huge as the Russian one. However, in the international markets we shall face the obstacles other countries are putting in way of our products.”

The fourth factor, Ulukayev said, should be overcoming the infrastructure limitations.

“Quite often businesses find it cheaper to produce goods than to deliver them,” the minister said. “We should have new roads, ports, and airports.