The Ministry of Finance announced the deliverance of Russia from the oil curse
Anton Siluanov
Photo: Dmitry Azarov / Kommersant
Russia’s economy move away from oil dependence, beginning to heal from the “Dutch disease”. This was stated by Finance Minister Anton Siluanov, reports Rambler News Service.
“Breathing the industries that in recent years, the years of high oil prices — was at a standstill, the so-called non-tradable sector. Our economy gets rid of the so-called Dutch situation, where we were sick all last years” — said the Minister at the Congress of the Russian Union of Industrialists and entrepreneurs (RSPP).
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According to officials, the transition through the changing external environment was for the Russian economy is not so dramatic as to other countries. “You see, we are budget constrained, the deficit is not increased. It is possible to create a favorable climate in such difficult times, when sharply reduced external demand,” he said.
On March 24, the price of Brent crude dropped below $ 40 per barrel. As of 12:30 GMT it fell to 39,86 USD.
A day earlier, Deputy Prime Minister Arkady Dvorkovich said that the Russian economy adjusted to low oil prices and the depreciation of the ruble will help to increase the supply of goods in China and Europe. “We hope that the quotes will remain approximately at the current level,” — said Dvorkovich.
On 18 March the President of the Bank of Russia Elvira Nabiullina said that the Russian economy quickly adapted to the new reality, thanks to a floating exchange rate. “The weakening of the ruble led to the growth of competitiveness, which is supporting such industries as agriculture, food, chemical and mining industry”, — said the head of the Central Bank. She added that a floating exchange rate softens the impact of external shocks.
“Dutch disease” referred to the pernicious influence of raw material orientation of the national economy. The Netherlands increased its export of gas since 1959, the investors invested in mining. At the same time money went from manufacturing and science industry. To mitigate the effects of Dutch disease, the government of the Netherlands was engaged in the redistribution of oil revenues in other sectors.
