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Economic development principles and too strong ruble: SPIEF recap

The President of Russia said that the future development of the country will be based on the freedom of entrepreneurship and be based on the principles of social justice

ST. PETERSBURG, June 18. /TASS/. The economic development of Russia will rely on freedoms of entrepreneurship and will be built on principles of social justice, President Vladimir Putin said at the plenary session of the 25th St. Petersburg International Economic Forum.

Forum participants also discussed challenges for the national economy along with the growing role of import and consequences of ruble rate fluctuations during the second day of the Forum.

Russia faces a serious challenge at present to make the transformation spurt in the economy, Sberbank CEO Herman Gref said. The bank expects resumption of the economic growth in the country as early as in 2024.

President Vladimir Putin highlighted six principles constituting the basis for development of the national economy during the Forum. These are openness, reliance on freedoms of entrepreneurship, balanced macroeconomic policy, social justice, advanced development of infrastructure and achievement of technological sovereignty.

The goods inflow to Russia is gradually restoring, Finance Minister Anton Siluanov noted. The current ruble rate benefits importers, despite all the logistical constraints, and the recovery of import has gradually started, he said.

Deflation in Russia is underway for the fifth week in a row, Minister of Economic Development Maxim Reshetnikov said. Deflation processes of recent weeks and "the excessive strengthening of the ruble rate" created the risk of entering the deflation spiral, the Minister said. The consumer demand drop is currently one of main problems for the national economy, Reshetnikov added.