Friday, January 23, 2015

Shuvalov urged to prepare for a severe and prolonged crisis – RBC

Shuvalov urged to prepare for a severe and prolonged crisis – RBC

First Deputy Prime Minister Igor Shuvalov

Photo: REUTERS 2015

First Deputy Prime Minister Igor Shuvalov, warns that the current crisis just seems softer than what was in 2008-2009.

« This is only apparent ease. In fact, the depth and complexity seems to me that we are already in a state of year when we are entering a more protracted and complex crisis, “- said Shuvalov, speaking in Davos at a session devoted to the situation in Russia.

Deputy Prime Minister called the situation in the economy “very heavy” and did not rule out that it will be even worse, what should be prepared not only power, but also business and society.

«anti-crisis plan in 2015 must be designed to ensure that help navigate to the “hard landing”. Economy sits firmly. We must learn everything from ordinary citizens to large corporations and the federal government, to live in the new conditions, “- said Shuvalov.

He stressed the importance of reform, the necessity of which has been discussed for many years, but the case it never came. In fact, the number and because, thanks to high export revenues, the urgent need for such reform was not.

Shuvalov said that the West imposed sanctions may even facilitate conduct unpopular reforms, as the external pressure on Russia was perceived by the public as not personally attack on Putin, but for the country as a whole. Thus, the sanctions to consolidate Russian society rallied his leadership of the country and provided political support.

«If Russian feel any pressure from the outside, he will never give up their leader. Never. Endure any hardships that will be in the country – to consume less food, less electricity, I do not know, some other things to which we are accustomed. But if we will feel that someone from the outside want to change our leader, and it will not be our will, we will be united as never before, “- Shuvalov said, noting that the longer the sanctions, the more public support for President Vladimir Putin .

First Deputy Prime Minister stressed that without a “factor of Ukraine” and sanctions to implement reforms in the fall in oil prices to $ 47 per barrel or below would be twice as difficult.

«Conduct reforms in poor external and internal conditions and low government support of the population – it is unlikely someone will. In this case, you could just flirt and carry out populist promises of social policy “, – concluded the first vice-premier.

On the other hand the return of large export earnings could be a problem, since in this situation has long needed reform of the country can once again be minimized, and the problems in the economy will “dig deep”, because in the case of higher oil prices “and legislator, and the voter will want more government spending».

For a while at the Davos forum watch online broadcasting RBC .

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