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Sanctions spur Russian economy — official

May 22, 2014, 19:58 UTC+3 ST. PETERSBURG
Serious sanctions against Russia bode ill for Europe, Vladimir Putin’s advisor Sergey Glazyev says
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© ITAR-TASS/Ruslan Shamukov

ST. PETERSBURG, May 22. /ITAR-TASS/. Current Western sanctions can have a positive influence on Russian GDP dynamics, believes Vladimir Putin’s advisor Sergey Glazyev.

What the West is presenting now is threats, not real sanctions, he believes.

“Too little time has passed to estimate the scale of the impetus that the West’s attempts to isolate Russia have given the Russian economy but I have no doubt this will be a positive impetus,” the economist told ITAR-TASS behind the scenes of the St. Petersburg International Economic Forum. Economic sanctions certainly boosted Russian GDP, he added.

The reasons are import substitution previously postponed for different reasons, as well as the need for the Russian monetary authorities to increase domestic lending for economic development in the place of reducing foreign lending. Besides, the situation would spur de-offshorization, he added.

To some economic sectors, sanctions could deliver a blow, “as we have lost a considerable portion of our technological base, which will be highly difficult to restore in the foreseeable future”. Russia had partners in the East, he said, and the world market learnt to circumvent sanctions long ago but it would “cost Russia more”.

At the same time, serious sanctions against Russia bode ill for Europe, believes Putin’s advisor. Sanctions like those introduced against Iran - trade and financial embargo - would mean 1 billion euro losses for European partners: “Germany would suffer most, Benelux will lose much, while for the Baltic states looms an economic disaster”.

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