Medvedev: Russia to adjust economic recovery package for 2016

GORKI, Moscow Region/MOSCOW, Jan 20 (PRIME) -- The bailout plan of the Russian government will be adjusted by developing new support measures and abandoning some ineffective steps in 2016, Prime Minister Dmitry Medvedev said at a meeting with the government expert council on Wednesday.

“Now we are preparing proposals, including prolongation of last year’s economic recovery plan,” he said.

“The situation is developing in such a way that it was only some time ago that we believed that we may need no special plan and the government may shift to routine works. But taking into account the way how things developed in the last three-four weeks, we’ve agreed with colleagues in the government, as well as in parliament, that the government will continue developing an economic recovery plan.”

The government must develop a range of new support measures and abandon some ineffective measures, Medvedev said.

Medvedev plans to hold a meeting on development of the Russian car industry at a site of top national car maker AvtoVAZ on Friday. The support to the industry must be focused on competitive exports, he said.

At present, the 2016 federal budget envisages a 65 billion ruble rescue package for the economy.

Earlier in January, Medvedev said the government will increase support to the car industry and provide 20 billion rubles of subsidies to support demand in January–June. The state support covers leasing, beneficial car lending, trade-in and scrappage programs.

PUTIN: RUSSIAN BUSINESS WITHSTANDS CHALLENGE

President Vladimir Putin said at a business forum that Russian business, including small companies, withstood difficulties in 2014–2015.

“The last two years were quite difficult for the economy. Real difficulties touched almost all branches. But it must be noted that business, including small companies, withstood it in general,” he said.

Small and medium-sized companies must be the mainstay of the economy, Putin said, adding that now they even face new opportunities due to the ruble devaluation.

(78.4862 rubles – U.S. $1)

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