Russian Prioritizes Anti-crisis Plan and Economic Recovery

Moscow - A new anti-crisis plan and a program of comprehensive macroeconomic reforms are on the economic agenda of the Russian government for 2016, with a view to a resumption of growth in the midst of depression.
Economic Development Minister Aleksei Uliukaev said on Wednesday to the press that the portfolio has submitted for analysis the proposals from other ministries and agencies to the plan of actions of the Executive for the current year.
According to the Minister, the version handed to the Government on Monday is subject to constant changes, and there is still a week for discussions, he said.
News of the low prices in the oil currency markets, unfavorable for the ruble, make uneasy the Prime Minister Dmitri Medvedev, who met yesterday with his cabinet.
The vice president, Igor Shuvalov, met on the same day with the portfolios of Finance and Economy.
I am convinced that a transition towards the recovery of economic growth is possible for this year, said the minister of Economy at the meeting with the deputy head of the Government.
Uliukaev said it would be a slow and discreet restoration for the time being, but considered that the measures of stability and development should be conjugated in a correct manner with appropriate projects.
The minister said that the changing macroeconomic reality required the adoption of decisions without panic, and mobilization of all resources in reserve.
He added that a new medium-term forecast will be ready for April, due to the high volatility of external indicators, thus he explained the postponement of a review of the scenario for the Russian economy.
A more moderate scenario for 2016 was prepared on the basis of a reference price of Ural crude at 40 dollars per barrel, and an average exchange rate of 68.2 rubles a dollar. The contributions are still plummeting, while the ruble is weakening in the exchange rate with the euro and the dollar.
The collapse of oil prices imposed a correction of the annual budget on the Russian government, to minimize the budget deficit. There is talk of a plan for cuts of up to 10 percent of the items, except defense and security.
Various forecasts predict a contraction of gross domestic product by 0.8 percent, compared with a projected growth of 0.7 percent. In 2015, Russia's economy decreased by 3.7 percent after a slight increase in 2014, 0.7 percents, according to the National Statistics Committee (RosStat).
Prime Minister Dmitry Medvedev said yesterday that unlike last year's anti-crisis plan, the current one contains measures to promote the development of the economy in a medium-term perspective.
Along with 'anti-crisis decisions, the new plan contains a significant package of proposals aimed at creating a foundation for stable development,' he stressed.
Medvedev reiterated the commitment of the State with its social obligations, and preserving an acceptable situation in the labor market, and ruled out the inclusion of an increase in the retirement age among measures.
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