High dependence of Russian economy from the oil industry should be reduced

MedvedevThe high dependence of the Russian economy from the oil industry noted the Russian Prime Minister Dmitry Medvedev at the extended meeting at the Treasury. It discussed the institution’s actions in 2016 and the priorities for this year. Medvedev commented on the oil price collapse in early 2016.

“Although the major challenges for the economy are not related to the current oil price, it is a challenge in the long run, and even in the short and medium term”, said Medvedev.

He instructed finance ministry experts to find a way to reduce the dependency of the Russian economy on the price of oil and added that there are “different proposals” to be discussed. The main task for the Ministry of Finance is to ensure the sustainability of the budget and the reduction of the inflation. The institution should also work to reduce the administrative burden on business and the development of the economy.

The Russian Prime Minister also noted that the economic downturn in 2016 was lower than expected, and the recession – not so long and not as destructive, as predicted. The Russian economy has increased its competitiveness.

According to Dmitry Medvedev, the first signs of recovery of the investments in the country are already showing and the ratings of the credit rating agencies have been proved.