Kudrin: Russia urgently needs to change its economic policies | Russia Beyond The Headlines

Kudrin: Russia urgently needs to change its economic policies | Russia Beyond The Headlines:

"For Russia's current model of economic growth to work, oil prices need to grow by $20 to $30 annually, according to former Finance Minister Alexei Kudrin. But no changes can be expected until the Russian government gets its act together, Kudrin said.
Alexei Kudrin, Russia's finance minister from 2000 to 2011, said the current problems of Russia's economy are a result of an economic model heavily dependent on oil revenues.
In an interview with the Moskovskij Komsomolets daily, Kudrin said he believed there are a host of other problems exacerbating the budget's excessive reliance on oil revenues.
"The economic growth we witnessed in the 2000s was also based on a growth in demand for commodities on Russia's domestic market, which was only partially driven by a boost in oil production. The main reason behind it was the growing oil prices,” he said. “However, the oil prices stopped growing and so did the domestic market demand. As a consequence, production growth also ground to a standstill, and our economic model stopped working.""

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