Western sanctions have had no effect on the policy pursued by the Kremlin, but on the Russian economy, and they affect seriously. As reported by RIA “Novosti”, said the former Minister of Finance of the Russian Federation, head of the Center for strategic research (CSR) Alexei Kudrin.

“Russia carries significant costs because of the sanctions. I always call this number from 0,8% to 1% loss of GDP growth. In the first two years it was almost 1%, now a little less. This year. Therefore, those who say that these sanctions are irrelevant – it is not. They seriously affect our economy, growth and living standards”, – Kudrin said after a meeting of the international discussion club “Valdai”.

Russia’s GDP, according to the Finance Ministry, amounts to 80 trillion rubles a year. Thus, the losses to the economy and citizens are, according to Kudrin, 680-800 billion annually. It is more than 6% of the budget revenues in 2016.

“Another thing is that as a political tool – it does not work, and it doesn’t work. With this I agree. It did not affect our policy,” he added. According to Kudrin, the business community and political community of Western countries want to “gradually reduce the sanctions”.

“We see this in the European version. I assumed that the sanctions have even at the end of this year will begin to decline, for all my estimates and conversations with Western politicians. Maybe this year won’t happen, but while my optimism is still in effect for next year. Next year will start their gradual decline,” – said Kudrin.

The introduction of new sanctions, such as Syria, the ex-Minister is not waiting.

In addition, in conversation with journalists Kudrin has called the proposed by the Ministry of labour “the tax” an inefficient way to force the Russians to officially get a job and pay insurance premiums, reports “Interfax”.

“I don’t think this is the primary path and, even more than say, an effective way, he said. – I think everyone has to create an enabling environment, reducing costs for legitimate businesses, not raising taxes, is a more correct way.”

Kudrin has reminded that in the 2000s, the share of shadow sector in the economy decreased due to the clearer rules proposed by the government. According to him, at present “the situation could be much worse, increased regulation, the number of bureaucratic rules.” Kudrin said that in order to reduce business costs it is necessary to reform public administration.

We will remind, Alexey Kudrin Deputy Chairman of RF government – Minister of Finance from may 2000 to September 2011. 25 Sep 2011 Kudrin in conversation with journalists in Washington, where he participated in the meeting of the International monetary Fund, reported serious differences with the then Russian President Dmitry Medvedev and refused to work in the future government under his leadership after the 2012 elections. The next day, Medvedev sent Kudrin to resign.

30 April 2016: President Putin appointed Kudrin Deputy Chairman of the economic Council under the President. A few days earlier Kudrin headed the CSR informed the journalists that on behalf of Putin will be engaged in preparation of strategy of development of Russia after 2018. The programme should be ready by the summer of 2017 and, according to the head of CSR may become a de facto program of Vladimir Putin in the presidential election in 2018.



Kudrin: Western sanctions did not affect Russia’s policy, but the economy suffers 27.10.2016

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