This week in photos: Confederations Cup opening and summer solstice celebrationsSociety & Culture June 23, 19:11
Turkish ambassador to Russia: Moscow and Ankara to join efforts in war on terrorWorld June 23, 18:45
Ukraine’s finance ministry files appeal to London Court against Russia in $3 bln debt caseBusiness & Economy June 23, 18:42
Ukrainian society tired of Poroshenko’s policy — expertRussian Politics & Diplomacy June 23, 17:58
Deutsche Welle sees Russian international broadcasters as threat to European ideasWorld June 23, 17:34
Watchdog claims Telegram provides means of communication to terroristsBusiness & Economy June 23, 16:45
Russia launches serial production of seaborne air defense missile systemMilitary & Defense June 23, 16:25
Kamaz to invest 50 mln euro in construction of assembly plant in AfricaBusiness & Economy June 23, 16:16
Key facts about Turkish Stream projectBusiness & Economy June 23, 16:05
MOSCOW, June 3. / TASS /. The former Russian Finance Minister and the head of the Civic Initiatives Committee think-tank Aleksei Kudrin said that the fall of the Russian economy this year will amount to roughly 4%, he said Wednesday speaking at the Federation Council.
"The Ministry of Economic Development expects this year's GDP to decline by 2.8%. I think the fall will be deeper - roughly 4%," he said.
Thus, according to Kudrin the Russian economy is in a full-fledged crisis "in all existing parameters."
Investments in fixed assets this year are falling almost like in the time of crisis in 2009, the real effective ruble exchange rate is now down by about 15%, "it is three times worse than in 2009," Kudrin said.
Besides that, about 500,000 people can lose their job in Russia during the crisis.
Speaking about the negative factors that affect the Russian economy, Kudrin noted that the sanctions factor "takes away 1% to 2% from the GDP."
In general, according to him, another factor affecting the low rate of economic growth in Russia besides sanctions is the lack of structural reforms and low oil prices.
Kudrin said that the current economic model, which was based on oil revenues and allowed to increase consumption without seriously improving production technologies, has exhausted itself and needs to change.
According to Kudrin, it is necessary to reduce defense spending and to increase investment in human capital - spending on education, science and healthcare.