Sanctions fail: Russia is no longer in recession – Medvedev

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April 17th, 2017 – Fort Russ News –

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Rusvena – by Inessa Sinchougova

Russia’s Prime Minister, Dmitriy Medvedev has stated that Russia’s economy is no longer in decline. 

Drawing conclusions on last year’s work of the government at a meeting with parliament deputies, he stated that difficult challenges were addressed and compromises had to be made, when fulfilling government obligations in context of constrained resources. 

“Many aspects were a success, others were not, but the main thing is that we have accomplished an end to the decline of the economy. We have created the necessary conditions for its continued growth. This is main result of our work, of which I intend to inform the deputies.” 

The annual address of the Prime Minister in Parliament will take place on 19 April.

Medvedev will also discuss economic issues directly with President Vladimir Putin, says Press Secretary Dmitriy Peskov. 

From a formal point of view, the work of the government can truly be considered a success; the decline has ceased and GDP has grown by 2%. Rating agencies are similarly beginning to look at increasing Russia’s credit rating. 

Nevertheless, there are considerable challenges in the economy to be resolved; real incomes are not increasing, loan borrowing is falling, the property sector is on the verge of collapse. Some improvements are expected only in 2018 – but are reliant on oil prices, as well as the potential for an easing of Western sanctions.

On Monday 17th, the dollar dipped below 56 rubles, showcasing a continued strengthening of the Russian currency. Moscow stock exchange current lists the exchange rate at 55.94 rubles to the dollar, 59.64 rubles to the euro.

It is notable that the dollar is decreasing in value in relation to all developing currencies; the Turkish Lira has strengthened amidst the Referendum, as well as the Korean won, with the backdrop of increased US military support.

High oil prices are also aiding the ruble along – a barrel of Brent crude is trading at $55.91 USD. (source)

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