Moscow not seen as possible host of Eurovision 2017 song contest - mediaSociety & Culture December 04, 22:22
Et-Tell in Damascus Province fully controlled by Syrian governmentWorld December 04, 21:46
Mirziyoyev campaign office says he is winning presidential elections in UzbekistanWorld December 04, 21:40
Preliminary results of Uzbekistan’s presidential polls to be announced on December 5 - CECWorld December 04, 21:28
Putin expresses condolences over fatal road accident in Khanty-Mansyisk autonomous areaSociety & Culture December 04, 20:20
Emergencies ministry confirms death of 12 people in road accident near Khanty-MansyiskSociety & Culture December 04, 17:04
Fidel Castro buried in Santiago de CubaWorld December 04, 16:50
Cuban revolution in pictures: Early years of Fidel CastroWorld December 04, 16:49
10 people, including 9 children, killed in bus accident near Siberia's Khanty-MansiiskSociety & Culture December 04, 15:32
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.