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International sanctions hinder foreign investment in Russia, says IMF

The IMF mission visited Russia on November 13-20

WASHINGTON, November 20. /TASS/. International sanctions are holding back foreign investment in Russia, reducing the country’s international market integration, the International Monetary Fund (IMF) said in a statement following an IMF mission’s visit to Russia.

"Russia’s overall economic situation may be characterized by three main factors. First, adherence to a sound macroeconomic framework, which supports economic activity by reducing uncertainty, keeping inflation under control and providing confidence in the exchange rate," the statement reads.

"Second, structural rigidities limiting growth, notwithstanding important ongoing reform efforts in a number of areas, including under the national projects. Third, international sanctions which have pervasive effects in adding to business uncertainty, holding back both foreign and domestic investment, and reducing Russia’s international market integration. Taking these factors together, the medium-term outlook for the economy remains subdued, with growth projected at or below 2% through the next few years," the IMF added.

The IMF mission visited Russia on November 13-20 "to discuss recent economic developments, Russia’s economic outlook, and the authorities’ policies.".

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