Putin: Russia passed worst of crisis

Russian President Vladimir Putin said at the 'Truth and Justice' Second Media Forum of the All-Russian People's Front of Independent Regional and Local Mass Media that Russia was over the most acute part of the crisis. Dmitry Piskulov, the chairman of the board of the National Currency Organization, noted that the economic recession became much slower, though no growth had started yet.

According to his forecasts, Russia may reach at least a 0% GDP change at the end of the year. The IMF's predictions that GDP would fall by 1.5% a year did not live up to expectations. The expert explained that payments for the external debt had been falling since their peak in late 2014, consumer demand was rising, the anti-crisis program was taking effect, the ruble rate has stopped fluctuating and stabilized at around 52-56 rubles per dollar. Piskulov said that the peak of the inflation had been passed in late 2014, the inflation rate was dropping, construction was on the rise.

Vasily Yakimkin, a docent of the RANEPA Chair of the Fund Markets and Financial Engineering, warned against hasty conclusions until September. In his opinion, the current developments are only one of the lowest economic points, especially in the financial sector. He reminded that there were still no cheap loans available for industry, corporations, small and medium-size business. Yakimkin believes that continuation of the sanctions for over two years would make technological delay very evident after 2017. Russia cannot catch up with technologies on its own.

Alexander Abramov, leading research associate of the RANEPA Presidential Institute of Applied Economic Research, noted that Putin's words concerned the uncontrolled crisis in the currency and finances. The ruble has stabilized, the inflation rate is dropping, no new upheavals are expected on the financial markets. The key rate is being lowered. Abramov speculates that fluctuations on the financial market will be possible until long-term growth model is found. The analyst believes that stability was achieved via the cooperation of the government and the Bank of Russia, and rising oil prices. Overall, Abramov considers talk about passing recession too premature, the crisis may still continue in 2016.