An economic forum, known as “Gaidar” opened on Thursday in Moscow to address Russia’s economic woes.
With “Russia and the World: Looking into the future” as the theme, the 2016 Gaidar Forum has become one of the most influential platforms since it was opened in 2010. It is an annual event held in mid-January by the Russian Presidency.
Addressing the forum, Russian Prime Minister Dmitry Medvedev said that the Russian government is anticipating the worst, including optimizing its budget by the most effective ways, under the current situation when the oil prices have been falling sustainably.
He said that the lulling economy is likely to last for a considerably long period and Russia should seek a new model for growth, gradually shaking off the dependency on of energy. Russia admits the reality and will take such new measures as cutting government spending and selling equities of state-owned banks to relieve the pressures on the economy.
Alexey Moiseev, Russia’s Deputy Finance Minister, said that the Russian government will not finance its deficit by using its foreign exchange reserves, because it tantamounts to drinking poison to quench thirst.
“The most important thing is to promote reform rather than reducing financial deficit by using foreign exchange reserves. Although it may have immediate effect, it is only short-lived. From the long run, it will cause bigger problems. So, we should take correct measures even if they are painful,” said Moiseev.
Experts said the falling oil price has given an impetus to Russia in escalating its economic reform and optimizing the economic structure.
Oleg Vyugin, an economist, said the drastic changes in external economic environment pose both challenges and opportunities.
“Any development emerges after adjustment. For example, depreciation of rouble increases opportunities for the export industry and competitive strength of domestic manufacturers over foreign ones,” said Vyugin. (CCTV/Reuters)