Peak of economic problems in Russia not over yet, - ex-Finance Minister
10:53, 28 December 2015

Peak of economic problems in Russia not over yet, - ex-Finance Minister

In November, the economic situation in the country worsened

10:53, 28 December 2015

Russia still hasn’t overcome the peak of its economic and financial problems, said Alexei Kudrin, Russia’s former Finance Minister and Head of the Committee for Civil Initiatives (

“Some time ago, many experts, and me too, thought the Russian economy already hit the bottom or, in other words, overcome the peak of the crisis. But currently, we see additional deteriorations in this area, which took place in November”, Kudrin said.

According to him, the economic situation is unstable for now. “Another – and even more serious – issue at hand is the rough fall in oil prices. If the prices stay at the same level for another half a year, we will witness further deterioration of the economic situation. Thus, we really can’t say the peak of our problems is behind”, Kudrin noted.

He added that 2016 will be a “serious challenge” for the Russian economy.  “The government expenditures will decrease, and it’s inevitable, because the incomes will go down, too.  The next year’s inflation will be about 7.9 percent, not the 6.4 mentioned in the official forecast”, Kudrin said.

December 1, Brent oil prices fell to USD 39 per a barrel – for the first time in seven years. Amid the lowering oil prices, Russian ruble cheapens, too. The dollar’s current exchange rate is 69.96 rubles, and the euro’s – 76.

In August, Russia’s Federal State Statistics Service reported that in Q2 2015, Russia’s GDP decreased by 4.6 percent compared with the same period last year. It’s the worst index since the 2009 economic recession.              

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