Russia is mired in a terrible recession, but Putin does not want anything to change – Bloomberg

Russia is mired in the worst two decades of recession. However, Russian President Vladimir Putin is still able to achieve praise from investors when he asked former Finance Minister Alexei Kudrin once again be an economic program 2018-2024 years. This writes Bloomberg, adding that it was at this period, obviously, will have the next presidential term of Putin, writes

Kudrin, who is credited with the economic success of Russia in the early 2000s, on Tuesday, before the economic forum in St. Petersburg, presented his plan. There are a lot of old recipes from the economist, which, in his opinion, should spur economic growth. In particular, Kudrin offers the Kremlin reduce Russia’s dependence on oil, invest in education, upgrade infrastructure, to resume good relations with the West to gain access to technology and to stimulate trade.

“But despite the fact that the policy aimed at solving the aforementioned problems, and has had positive results earlier, Kudrin admits that the chances that Putin will agree to the package of actions is very small. The reason is that such measures will destroy the “kremlincity” model built by Putin at a time when the oil barrel was worth twice what it is now. This system plays into the hands of people who are closest to power. Thus, there was a group of people who are constantly enriched and create obstacles for change,” the article says.

Kudrin calls since the last 10 years, when Russia’s economic growth did not exceed 1% per year, although in the beginning of Putin’s rule, it amounted to 7%. “Russia catastrophically loses time. Unfortunately, the government is only gradually beginning to understand that structural changes are necessary,” – said Kudrin.

Earlier Alexey Kudrin declared that before modern Russia faces the same risks faced by the Soviet Union in the late 1980s and in the early 1990-ies.

“The Soviet Union collapsed not due to weak army and the KGB. It collapsed because it was inefficient, outdated model of the economy,” he said.