Russia's economy 80 pc adapted to external challenges: Deputy PM
Moscow, July 2
The Russian economy has completed 80 per cent of its adaptation to external shocks, Russian Deputy Prime Minister Alexander Novak has said.
"When we talk about adaptation to external challenges, we arrive at that 80 per cent figure," Novak said at the Bank of Russia Financial Congress.
"When it comes to the progress we are making toward technological sovereignty and technological leadership, I believe we are only halfway there," he said on Wednesday.
The deputy PM highlighted several key shifts in Russia's economic structure, notably the shrinking share of the fuel and energy complex, reports Xinhua news agency.
"It previously accounted for roughly 18 to 20 per cent of GDP. Today its share has dropped to 13 per cent of GDP, while its proportion in federal budget revenues has tumbled all the way from 42 per cent to 22 per cent," he said.
According to Novak, Russia's investment-to-GDP ratio is projected to climb from the current 24 per cent to 28 per cent under official plans and forecasts.
Meanwhile, in a separate development, the Bank of Russia on Wednesday said that Russian domestic oil prices may remain elevated in the near term and then decline gradually, according to a policy summary published on its website.
In the "Summary of the Key Rate Discussion," the central bank noted that inventory drawdowns amid ongoing geopolitical conflicts could delay the oil market's transition to a surplus. Most participants in the discussion agreed that oil prices would likely remain high in the short term and ease slowly.
However, some participants expected a quicker decline in oil prices. Elevated prices in the preceding period had driven the expansion of production capacity and boosted oil supply in other regions, allowing depleted inventories to be replenished faster than expected, according to the bank.
— IANS
Reader Comments
As an outsider looking in, the drop from 42% to 22% in oil revenue share is dramatic. But I'm skeptical if this is truly sustainable or just short-term coping. Geopolitics can shift quickly.
Read: Russia is being forced to adapt because of Western sanctions. Meanwhile, India is still heavily dependent on oil imports. We should learn from their push for technological leadership and reduce our own vulnerabilities. Jai Hind!
The 50% progress on tech sovereignty seems low. Maybe they're struggling with high-tech imports. The oil price fluctuations could delay their recovery further. Russia's resilience is notable, but I'd wait for more data.
It's fascinating how sanctions actually forced Russia to rethink its economy. But I think 80% adaptation is optimistic—there are always hidden costs. Still, their GDP investment ratio goal of 28% is ambitious. Hope it works for them.
I'm a bit skeptical—80% adaptation sounds like a political boast. Look at the oil price speculation: if they're still worried about inventory drawdowns, the foundation isn't solid. But credit to them for trying to pivot away from energy dependence.
The key rate discussion summary is revealing
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