Ex-Finance Minister: Because of sanctions, Russia will lose $20bn annually

Russian ruble

 

2014/10/06 • Russia

Because of Western sanctions, the Russian economy will lose annually more than $20bn. The former Finance Minister Alexei Kudrin said this in an ICTV broadcast, writes the UNN.

“Losses from the sanctions is approximately 1% of potential GDP of the Russian Federation. If we are to speak about the losses, then 1% of economic growth is 700 bn rubles this year. This is more than US $20bn,” – said Kudrin.

Russian President Vladimir Putin believes that the sanctions “violate the fundamental principles of the WTO, undermine the credibility of the international financial institutions, currency.” At the same time, the Russian president calls to “not get stuck” on the sanctions.

The Economic Minister Alexei Ulyukayev called the high inflation of 8.1% accumulated for the year and the low economic growth of 0.8% – a “negative combination.”

The European Bank for Reconstruction and Development believes that the round of sanctions against Russia announced by the European Union in September  would be particularly painful for Moscow, as it affects the oil sector, constituting the core of the Russian economy.

Bloomberg writes that if pro-Russia fighters will try to create a land corridor to the Crimea by capturing Mariupol or repulse Ukrainian forces from the Donetsk Airport, the EU may impose new sanctions against Russia.

Translated by: A. N.
Source: GordonUA.com

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