Russian economy ‘won’t be as it was,’ central banker says

ST. PETERSBURG Russia –

The head of Russia’s Central Bank warned Thursday that there could be persistent pressure on the country’s economy from abroad. This could dampen hopes that conditions will return to pre-Russian invasion.

Elvira Nabiullina said, “It seems to be obvious to me that everyone knows that it won’t be the same as it was before.” saidA session of the St. Petersburg International Economic Forum, an annual event aimed at investors.

She stated that “External conditions have changed over time, if not forever.” said.

Russia was subject to a variety of sanctions following the Ukraine military operation. This included major banks being cut off of the SWIFT international payments system and Western bans against flights. Many foreign companies have stopped operations in Russia, or pulled out completely.

These actions have not yet been fully evaluated.

Maxim Reshetnikov the Minister of Economic Development stated at the same session that Russia’s gross national product is expected to fall by 7.8% in the current year. However, “in recent months, there have been a wave o improving assessments and prognoses.”

Many Russian officials tried to get around sanctions by claiming that Russian enterprises could take over.

Although government funding could be helpful, Anton Siluanov, Finance Minister warned that such measures could prove to be too costly.

He stated, “Now, we hear, ‘Let’s get funding, let’s invest more there’… such budget medicine shouldn’t turn into a drug.” said.

Russia took significant steps to support the ruble after it lost half its value during the Ukraine conflict. This led to a rebound that has pushed it to levels never seen in years. This has made Russian exports more costly. Many countries are taking steps to reduce their dependence upon Russian oil and natural gases.

Nabiullina demanded that Russia reduce its overall emphasis on exports in favor of domestic production.

She said, “It has always been believed exports are our intrinsic worth.” said. “We must rethink and, enfin, think about the fact a significant amount of production should work in the domestic market. More processing, more creations of final products.

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Heintz reported in Moscow.

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