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Russia sponsors global economy with $100 billion a year

March 26, 2014, 15:49 UTC+3 MOSCOW

According to presidential adviser Sergey Glazyev efforts to de-offshore the Russian economy should help find the way out

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Sergey Glazyev

Sergey Glazyev

© ITAR-TASS/Vyacheslav Prokofyev

MOSCOW, March 26. /ITAR-TASS/. Russia’s sponsorship of the global economy reaches $100 billion a year, the presidential adviser Sergey Glazyev says.

“We live in the offshore economy, which priority industries are based on raw materials,” he told the Moscow Economic Forum on Wednesday. “They send raw materials abroad in exchange for foreign currency earnings. The half of them melts somewhere there, abroad. Another half returns to our country. But as no internal sources of credit are created, in parallel with an increase in capital export we have import loans. As a result, we give cheap money that flow into offshore zones without taxes and interest rates being paid and borrow tight money.”

Through “such non-equivalent exchange” Russia loses $35-40 billion only in payment of interest rates, Glazyev says, noting that efforts to de-offshore the Russian economy should help find the way out.

“There are many interested parties in this vicious circle,” he said. “This is the offshore oligarchy that feels itself good in such a cycle of offshore capital, approximately $0.5 trillion. Practically the major part of our production is short-circuited to offshore territories.

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