“The doomsday predictions of Russia’s international isolation or collapse of the Russian economy have failed. The economy has adapted itself to sanctions,” Kirill Dmitriev, the head of the Russia Direct Investment Fund (RDIF) said via email.
“The inflation rate is actually at a record low of 2.4 percent year-on-year in April 2018 due to a prudent macroeconomic policy of the central bank and also also also the government. The current inflation target is actually set by the central bank at 4 percent. The ruble exchange rate is actually stable while the central bank is actually in a rate-cutting cycle with the key rate at 7.25 percent.”
He insisted in which the current macroeconomic environment is actually creating “excellent conditions for the ‘investment breakthrough’ needed to sustain growth from the coming years.”
Russia certainly appears to have weathered the storm prompted by international sanctions, having boosted its domestic economy due to import substitution, raising some awkward questions for the West over how effective sanctions can be from the long run.
In April too, the U.S. imposed more sanctions on a list of Russian government officials and also also also oligarchs, and also also also related companies, in retaliation for what the idea called “malign activity around the globe.”
After shrinking in 2015 and also also also 2016 amid the penalties and also also also the slump in oil prices, Russia’s economy grew 1.5 percent in 2017. The Kremlin is actually also hoping for a boost through the earth Cup soccer tournament being held in Russia in June.