Russian economy will not collapse, EDB head says
YEREVAN, October 21. / ARKA /. Russia’s economy will not collapse, Dmitry Pankin, chairman of the Eurasian Development Bank (EDB) Board, said in an exclusive interview with ARKA. According to him, it is able to withstand the drop in oil prices to $40 per barrel.
"Our calculations show that the economy will endure. The ruble may lose some of its value, the growth rates will fall further, but no collapse will happen," he said, expressing regret that Russia failed to get rid of its dependence on oil market.
"All the talk about the modernization of the economy, the formation of another model that would not depend on oil prices, production of competitive products and creation of a favorable investment climate has not materialized, ‘he said.
The key to success, according to him, is not rising oil prices, but building a more diversified economy, competitive in the world markets.
"This is the only way to achieve success in the modern world. In a sense, a crisis creates some possibilities- such as reduced costs, falling wages and cheaper resources. In these conditions, we must try to find a niche in the market where it will be possible to develop, "Pankin said.-0-
"Our calculations show that the economy will endure. The ruble may lose some of its value, the growth rates will fall further, but no collapse will happen," he said, expressing regret that Russia failed to get rid of its dependence on oil market.
"All the talk about the modernization of the economy, the formation of another model that would not depend on oil prices, production of competitive products and creation of a favorable investment climate has not materialized, ‘he said.
The key to success, according to him, is not rising oil prices, but building a more diversified economy, competitive in the world markets.
"This is the only way to achieve success in the modern world. In a sense, a crisis creates some possibilities- such as reduced costs, falling wages and cheaper resources. In these conditions, we must try to find a niche in the market where it will be possible to develop, "Pankin said.-0-