Bloomberg Business — $50 Oil for 15 Years Isn't What Scares Bank of Russia Governor

True to form from a central banker. More neoliberalism ("reform") is always the solution regardless of circumstances based on "all things being equal" when they never are.

Bloomberg Business

$50 Oil for 15 Years Isn't What Scares Bank of Russia Governor
Evgenia Pismennaya, Anna Andrianova, Ryan Chilcote

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Russia Beyond the Headlines
VTB Bank chief: There is no real crisis in Russia

Some neoliberals beg to differ:

Oleg Deripaska, one of Russia's richest people and head of the Basic Element Group, did not agree with Kostin's statement. According to Deripaska, "there is a crisis in Russia," and in particular it is seen when "Russian companies are denied access to capital markets."

The forum was notable for the completely polar views on the development of the crisis in Russia expressed by those participating.…

According to Oleg Deripaska, Russia will not have any economic growth until the country returns to the conditions in which businesses were managed in 2007. Meanwhile, Minister of Economic Development Alexei Ulyukayev warned that a "bitter pill" would have to be swallowed to return to any growth.

"All the prescriptions are known. But Russia, just like a sick man who doesn't want to drink bitter medicine, is putting it off," explained Ulyukayev.

Finance Minister Anton Siluanov, meanwhile, argues that in the current situation the government must change its approach to the budget.

"Firstly, this must be done through the reduction of government expenses in the economy," said Siluanov, who believes that the main direction should be the reduction of the budget deficit and restriction on budget expenditure.

“We can speak about the reduction of the key rate, the reduction of inflation, but in the end these are just macroeconomic conditions for obtaining growth," he said, arguing that for stable growth the country needs to stimulate private investment.

Poll: Russians adjusting to crisis, buying less expensive goods, food

Substitution. What's supposed to happen. Imports decline and import substitution results in domestic economic development.