Forecast: Russia will be able to use the accumulated reserves no more than 2-3 years

Alexei Kudrin: Russia is living through the past in a weightlessness, not feeling the reality

Baku. 16 June. REPORT.AZ/ Russia will be able to use the accumulated reserves no more than 2-3 years.

Report informs referring to the TASS, Former Minister of Finance of the Russian Federation, Chairman of the Board of the Center for Strategic Research Alexei Kudrin said at the St. Petersburg International Economic Forum (SPIEF).

According to him, to cover the deficit in a year Russia has to be take from the reserves of 2.5 trillion rubles (40 billion USD), but they are not long enough: "That is, we are living at the expense of the past, in this weightlessness, notfeeling the realities. We sell our oil reserves, the Central Bank prints rubles, we will cover the deficit. We will be able to do this only for 2-3 years."

Kudrin added that the Central Bank, trying to keep the money supply, "at the same tike prevents credit to other channels of the economy": "If to give up the Reserve Fund, then we will have to borrow money on the private market at high interest rates."

Notably, Finance Minister Anton Siluanov said in his speech at the forum that Russia must give up part of direct budgetary commitments: "Now is the difficult period, when we need to refuse from something. For the companies and he state it’s very difficult to give up direct obligations. It is very difficult path, but this should be done", he said.

In his words, to consolidate the budget may be realized in two ways: by reducing the expenditures that is, giving up part of the commitments, or raising taxes. However, increase of tax, according to the minister, may adversely affect the further growth of the economy.

He also added that the tactical task for the next three years is to reduce the budget imbalance to a minimum: "The budget should adapt to the new economic conditions."

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