Minister: Russian economy to withstand new sanctions

MOSCOW, Oct 30 (PRIME) -- The Russian economy has adapted to external shocks over the past three years and has created a safety cushion against new potential sanctions making it unnecessary for the state to intervene in the economic policy, Economic Development Minister Maxim Oreshkin told reporters Monday.

“We believe we need to prepare for anything. The art of economic policy is understanding what you will do, including understanding of external threats,” Oreshkin said.

“That macroeconomic policy, which has been gradually formed over three recent years, those structural reforms, which were held, have quite a big margin of safety,” he said.

The budget rule is based on an oil price of U.S. $40 per barrel, while the current oil prices are higher; there is a mechanism of currency purchases that has been working since February; there is the central bank’s inflation targeting policy that allows it to stabilize inflation and ensure stable interest rates, Oreshkin said.

“All these reforms have created a significant margin of safety against external shocks, whether it is a reduction of oil prices or some other events. That’s why there is a buffer here, and the economy will certainly withstand external threats,” he said.

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