Russia declares worst of economic crisis over By Olga Tanas Bloomberg News
First Published 2 hours ago • Updated 2 hours ago
Moscow • The worst is over for Russia's economy after a tailspin in oil prices and sanctions over Ukraine choked off access to credit and sparked the biggest currency crisis since 1998, according to Finance Minister Anton Siluanov.
"The negative peak is behind us and instead we are seeing certain signs of stabilization," Siluanov said in Moscow Thursday at a conference organized by the Russian Union of Industrialists and Entrepreneurs, the nation's big-business lobby. "The situation in the financial sector is also stabilizing. We see rising returns on debt markets, and the financial market is showing momentum toward growth."
The world's biggest energy exporter is shaking off the effects of the lowest oil prices since 2009 and economic penalties levied over the crisis in Ukraine by the United States and Europe. The ruble has turned a corner after last year's 46 percent slump, notching the strongest performance among emerging markets in the past month.As inflation started to stabilize, the central bank has embarked on an easing cycle and focused more on jumpstarting the economy. The Bank of Russia last week lowered its main interest rate for the second time this year and signaled more policy relaxation ahead if consumer-price growth continues to ease. Russia may be able to keep inflation at 11 percent to 12 percent this year, according to Siluanov.
Greater freedom for business will be Russia's "best answer to all external challenges and limitations," President Vladimir Putin said at the same conference.
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Russia's current account in 2015 may post a surplus of about 6 percent of economic output and remain strong in the future, allowing the country to meet this year's debt payments and overcome the impact of capital outflow, Siluanov said.
"In general, we see the process of adaptation to new economic conditions," he said. "We are talking about an economic adjustment and adaptation of the financial markets."
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