Nabiullina: it’s very unlikely Russian economy to grow above 1.5% to 2%

It’s very unlikely that Russia's economy can grow above 1.5% to 2% a year, the Russian Central Bank chief Elvira Nabiullina said in the interview with The Wall Street Journal.

The official said her focus has been on improving the health of Russia’s banking sector. "It became obvious to everyone that something had to be done," she noted. "In the circumstances when we started facing external challenges and geopolitical risks, the financial system had to become very strong and very stable," Nabiullina stressed.

The Russian Central Bank chief said the same regulatory rules apply to all banks, adding that she has shut down several regional state-owned lenders.

While the cleanup of the financial sector is nearly finished, Nabiullina said, she sees bigger problems for Russia’s economy as a whole. "The previous model of [consumer-led] economic growth has been drained," she said. 

According to Nabiullina, even if the price of oil rose to $100, from around $65 today, she said, "it’s very unlikely that our economy can grow above 1.5% to 2%" a year.