The collapse in oil prices forced the government talk about reform


Elvira, Nabiullina: Ilya Pitalev / RIA Novosti

The head of the Bank of Russia Elvira Nabiullina lamented the fact that in adverse external conditions, Russia should carry out economic reforms. With such statement the head of the Central Bank addressed the meeting of the State Duma, reports “Interfax”.

“We need to do a conversion and move to a new model of economic growth under adverse external conditions, under high uncertainty,” — said Nabiullina, noting that its powers are insufficient to compensate for internal structural constraints.

Under the unfavorable external environment refers to the collapse of world oil prices, the decline in emerging markets, as well as the trade war and new sanctions. Nabiullina is confident that the introduction of the floating exchange rate significantly strengthened the position of Russia and reduced the dependence of economy from fluctuations in oil prices.

“Although oil is still a significant risk factor, which we have been following closely, but our calculations that show that the Russian economy has become much less sensitive to fluctuations in oil prices”, — said the head of the Central Bank.

The thesis of the need for structural reforms” was extremely popular among the Russian establishment during the collapse of world oil prices in 2014. Then almost all members of the government argued that Russia should undertake “structural reforms”, among which, in particular, was called privatisation, liberalisation of the tax and administrative regimes, and more. However, with rising oil prices, all the discussion of reform has faded.

World oil prices over the past two weeks have fallen almost $ 10, traders fear a repeat of the end of 2014, when prices for several months fell by more than two times.

Video, photo All from Russia.


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