The WSJ reports,"Russia won’t change its economic growth strategy because of Western sanctions but will try to lower its dependence on imports", Prime Minister Dmitry Medvedev said Tuesday.
Russia’s economy is in danger of sliding into recession this year for the first time since 2009, the peak of the global financial crisis, as the sanctions war between Moscow and the West has sent the ruble to all-time lows, fueled capital flight and evaporated investment activity.
Mr. Medvedev said Russia may post growth similar to that of the European Union. In early 2014, the International Monetary Fund predicted that the euro area would grow 1% this year, in line with the Russia’s economy ministry’s forecast. However, should net capital outflows remain as strong as in the first quarter and reach $150 billion in the whole of 2014, the economy may contract by 1.8%, the economy ministry said earlier in April.
Mr. Medvedev said that Moscow itself “won’t trigger a reduction of economic ties” with Europe. He said that Moscow actively trades with Europe but is considering widening its trading ties in the East, adding that Russia should aim to make the ruble a global reserve currency and switch its international trade to rubles, particularly commodities trade.
The Prime Minister vowed that despite any possible sanctions the government will fulfill its social obligations and won’t let Russian citizens become “hostages of political games.”
Mr. Medvedev said the government won’t let “unfriendly” actions from outside the country weaken Russia’s defense industry and will aim to bolster its position in the global defense market by increasing its military cooperation with Latin America and Africa.
