CHAIRMAN OF THE GOVERNMENT OF THE RUSSIAN FEDERATION TOOK PART IN THE RUSSIAN ECONOMY: OPPORTUNITIES FOR ADVANCED DEVELOPMENT PLENARY SESSION

The first day of Moscow Financial Forum ended in the Russian Economy: Opportunities for Advanced Development plenary session addressed by Chairman of the Government of the RF Dmitry Medvedev, First Deputy of Chairman of the Government – Minister of Finance of the RF Anton Siluanov, Minister of Economic Development of the RF Maxim Oreshkin, Mayor of Moscow Sergey Sobyanin, Chairwoman of the Central Bank of the RF Elvira Nabiullina, President and Chairman of the Board of VTB Bank (PJSC) Andrey Kostin, Chairman of the Audit Chamber of the RF Aleksey Kudrin. Deputy Director of Russia TV Channel All-Russia State Television and Radio Broadcasting Company (VGTRK) Sergey Brilev acted as the plenary session moderator.

“Trade wars are the basic global risk today. However, despite the sanctions, investors' interest in our country is still growing. Earlier, fluctuation in oil quotes made the Ministry of Finance very nervous, while now can see some surplus. This is a sound safety bag, which, I hope, will not be used for its “intended purpose”, Dmitry Medvedev noted in his opening speech.

“We were guided by several principles when generating the budget: we concentrated support on attractive projects with a long-term return, on national objectives set by Order of the President dated May 2, 2018; we redistributed the budget expenditure patterns in favor of creating a comfortable infrastructure and, of course, a great number of social projects”, Head of the Government highlighted.

As reported by Minister of Finance of the RF Anton Siluanov, the rate of investment from gross domestic product presently varies from 20% to 21%. “This is a very low figure, it should be made 25% and higher, because all those countries which attained successful growth had a more than 30% level of investments to GDP”, he said.

Anton Siluanov also noted that all financial and managerial resources should be concentrated on creating favourable conditions for the business so that the country would be inside the top five economic countries. “We guarantee stable conditions to those businessmen who are ready to invest in the Russian economy. During the autumn session, we are going to introduce a relevant bill with the State Duma. This is what businessmen are expecting from us”, - the minister added.

“We are to focus on two large blocks – demand pattern and implementation of structural measures related to supply. In terms of the fiscal policy, one has to prioritize correctly so as to ensure the infrastructure growth. Our 2020 target plan implies a 2.1% GDP growth rate. However, attention should be paid to structural changes that could provide not a 2% but a 3% rate. We should be guided by those strategic indicators that Russia can afford”, - Minister of Economic Development of the RF Maxim Oreshkin said.

“Price stability and sustainably low inflation encourage investment. However, one should not think that stability in itself creates investment”, Elvira Nabiullina started her speech. Chairwoman of the Central Bank of the RF expressed confidence that the low economic growth rates in the country are primarily attributed to structural factors: “Monetary policy is practically helpless here, so we should not repeat the mistakes of those countries which neglected the structural nature of the slowdown and tried to “heat up” the economy with printing presses. This resulted in a short-time burst of growth and in further slowdown. Increased inflation and volatility are not what we are heading for”.

It is worth reminding that the second working day of Moscow Financial Forum on September 13 will be opened by the Economic Reforms in Russia: Evolution and Current Priorities plenary session. The session will be addressed by First Deputy Chairman of the Government – Minister of Finance of the RF Anton Siluanov, President and Chairman of the Board of Sberbank German Gref, Chairman of the Board of LLC “MC ROSNANO”, Chairman of the Board of the Fund for Infrastructure and Educational Programs Anatoly Chubais.

General sponsor of Moscow Financial Forum – VTB Group. Chief sponsors – Alrosa OJSC, Sberbank PJSC and Gazprombank JSC. Official sponsors – Rosoboronexport and RT-Finance JSC. The forum is held with support from Rostekh State Corporation.

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