Sanctions may put Russia in 2-year recession

Sanctions imposed on Russia, could lead to a recession economy, especially if you also imposed restrictions on bank transactions with currency. This opinion was expressed, former Finance Minister of Russia Alexei Kudrin at a conference of the American Chamber of Commerce.

Kudrin warned that further restrictions on banking operations, the recession of the Russian economy will continue, “not one, but two years”. Currently Russia is experiencing a complicated time and low economic growth will continue within three to five years. “If not held certain reforms, the slower growth will persist for a long time”, said he.

The former Finance Minister honored criticism of the Russian government to the crisis in Ukraine. The publication states that in his speech at the conference Kudrin stated that Moscow has no capacity to assist all state companies affected by Western sanctions. Why are commitments to major projects which are implemented with state money.

Finances Feed recall that on September 12th came into force new sanctions by the EU and the United States, directed to the state-owned energy companies, including giant Rosneft. The company has already announced that it will seek state aid in order to overcome the negative effect of them closed external capital markets. Rosneft asked the state 42 billion USD.

In times of economic slowdown and rising costs for social projects, the government will be able to help all convinced Kudrin. “Companies are turning to the government, but government support is limited by rising social costs”, he explains.