Official: New oil price fall can stem Russia’s economic recovery

MOSCOW, Sep 1 (PRIME) -- A new oil price decline could hurt Russia’s economic recovery which has recently started, Deputy Finance Minister Maxim Oreshkin told reporters Tuesday.

“The structural character of the oil price fall leaves us no hope for a quick cyclical recovery. Furthermore, a new wave of an oil price decrease can hurt further recovery of the economic growth and can keep the growth rate close to a zero notch until the end of the year,” Oreshkin said.

According to Oreshkin, July’s 0.1% adjusted gross domestic product growth in seasonally adjusted terms after contraction in June was due to economy’s adaptation to lower oil prices.

Russia has passed the peak of sanctions’ influence on its economy because foreign debt of Russian companies is gradually declining, which will reduce capital outflow and pressure on the Russian financial market, he said.

The investment activity will resume growth as soon as the forced debt cutting period in Russian companies ends, he said.

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