Business & Economy

Russia says external economic affairs may have changed forever

Moscow, Jun 16 (EFE).- Senior Russian officials on Thursday acknowledged that the country’s external economic affairs may have changed forever due to Western sanctions leveled against Moscow, which have impacted production, logistics and technology.

Chairwoman of Russia’s central bank (CBR) Elvira Nabiullina said flexibility was required to confront the “complex” and “challenging” situation.

“External conditions have changed for a long time, perhaps even forever,” she said during the St. Petersburg International Economic Forum.

“We have to respond to these changes proactively,” she added.

Nabiullina said that Russia must rethink its economic model, which up until now had been heavily reliant on exports.

She also called for a policy of relaxing restrictions on foreign currency in Russia, which were imposed at the beginning of Moscow’s invasion of Ukraine and stated that deposits in dollars and euros would not be confiscated.

Maxim Oreshkin, an advisor to president Vladimir Putin and former economic development minister, echoed the words of the central bank chief.

“What’s happening in the world now is not some short-term thing, but rather a tectonic change in geopolitics,” he said.

“Things are no longer like they were. No buts. And this affects all levels of government and the sooner we accept it, the better it will be for the country.”

In April, the CBR predicted Russia’s economy would enter a recession of between 8-10% due to Western sanctions, although it is expected to forecast a less pronounced recession when it revises its outlook in July.EFE


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