Russia’s First Deputy Prime Minister Andrey Belousov delivered a speech today at a “Government Hour” meeting at the Federation Council. He spoke of a slowdown in weekly inflation, a shrinking Russian economy, attempts by the West to impose a global economic blockade on Russia and the reluctance of foreign companies to leave the country. . Read the main takeaways from Realnoe Vremya’s report.
About support for the economy at 7-8 trillion
“One of the main risks today is, on the one hand, the downturn in the economy due to logistical restrictions and insufficient liquidity in the economy, on the other hand. backbone companies demonstrate that this decrease has already started, unfortunately, although it has not yet almost hit the labor market,” Belousov said today (as quoted by Interfax).
According to him, the drop in industrial and commercial production was around 11%, in the other sectors it is 9-10%.
The total amount of support for the economy, which is safe for inflation, is estimated at 7-8 trillion rubles. The money will be spent on preferential loans for industrial enterprises and trading companies at 11% (the loan portfolio will be 1.3 trillion rubles) and at a rate of 10% for grassroots agricultural organizations (300 billion rubles), IT companies, etc.
“So given mortgage lending, backbone business lending, SME lending, we pretty much chose those limits. tax, etc.,” the Russian Deputy Prime Minister said.
About the compensation of a price increase for low-income citizens
From April 2 to 8, inflation decelerated to 0.66% in Russia, said Andrey Belousov. After the imposition of the sanctions, prices increased by 2% per week on average. Commodity prices increased by 10% on average. However, there are exceptions, and it was these goods that were in high demand.
“For sugar and the so-called borscht set – from 50 to 60%. Sustainable foods (salt, flour, cereals) — from 10 to 20%, non-food items heavily dependent on imports — from 16%,” the Deputy Prime Minister added (quoted by Interfax).
On March 20, consumer demand for socially important foods stabilized, stocks began to replenish: it’s more than two weeks for sugar, more than 5 weeks for sunflower oil, 5- 6 weeks for flour and cereals, 10-12 weeks for infant formula and canned goods.
Belousov continued to talk about inflation and claimed that compensation measures for pensioners, low-income citizens and families with children are being worked out to minimize the consequences of the rise as much as possible. Russian President Vladimir Putin issued such an order.
About the West’s attempt to impose an economic blockade
Now the West is trying to impose an economic blockade against Russia in four areas, the Russian Deputy Prime Minister said: financial, commercial, transport and humanitarian.
“The idea of our geopolitical adversaries is to isolate Russia as much as possible from the world economy, to literally tear it away from global economic ties, thus launching processes of degradation and dissolution of our economic system,” he said. claimed Belousov.
However, according to him, it is impossible to fully create such a blockade.
“It is impossible to isolate Russia – the world’s sixth largest economy – from the global economic system. And the events of the last month and a half clearly prove it,” he said.
About the willingness of foreign companies to stay in Russia
Belousov called the West’s attempt to prevent cultural values from returning to Russia a provocation: “Of course our adversaries – I’ll call them that because they are, in fact – they constantly provoke us.”
The Deputy Prime Minister said this was aimed at Russia’s heavy-handed actions against foreign companies that continue to operate in the country.
“Most of the foreign companies – I have met the leaders of many of them here – want to stay now. They obey the decisions taken by their general staff whose position is mainly ‘neither yes nor no, we will see how the things will unfold,” TASS quotes Belousov.
A draft law on the introduction of external management of foreign companies that have announced their exit from the Russian market was introduced yesterday in the State Duma. The initiative will apply to companies that took the decision without obvious economic reasons based on anti-Russian moods in Europe and the United States.