OLGA IZRYADNOVA: “TIMELY SUPPORT MEASURES HELPED MITIGATE THE PRESSURE OF WESTERN SANCTIONS”
In her interview with Xinhua, Olga Izraydnova, Head of the Structural Economic Issues Department of the Gaidar Institute expressed an opinion that the authorities’ timely measures on financial stabilization, guidance and motivation of the real sector amid unprecedented sanctions on the flows of goods and financial resources made it feasible to mitigate the pressure of western sanctions.
“The modification of the earlier utilized instruments of anti-crisis support of social institutions, the real sector and backbone enterprises with adjustment of fiscal and monetary parameters has led to a revival of the domestic financial market, subsequent cuts in the key interest rate and a slowdown of the rate of inflation,” Olga Izryadnova added.
Olga Izryadnova noted that amid a relatively favorable global market environment Russian extractive industries, particularly hydrocarbon production, still demonstrate growing profit margins, open up new lines of exports and make higher contributions to the economy with accumulation of sufficient foreign currency funds.
Further, Olga Izryadnova pointed to the positive momentum of the agriculture and mobilization of competitive and import-substituting capacities in such sectors as the light industry, consumer electronics and the furniture industry, particularly owing to the formation of alternative parallel import channels on new loyal markets.
Olga Izryadnova noted that amid growing uncertainties the situation in the machine-building complex is rather challenging. “At the same time, positive aspects related with engagement into manufacturing and logistics chains of new domestic partners with sufficient import-substituting competences, as well as alternative suppliers of component parts and finished goods from external markets helped slow down adverse trends in manufacturing of individual types of machines, equipment and transport vehicles and in related types of activity, too,” Olga Izryadnova said.
Olga Izryadnova believes that the adaptability of Russian manufacturers to the shrinking domestic market and appreciation of the Russian ruble is taking place in two directions. On one side, there is a concentration of business activities in industries compensating for a fall in imports on the domestic market because of sanctions. On the other side, alternative production, transport and logistics chains are being formed for filling in niches on the markets experiencing tougher cross-border cooperation restrictions.
Olga Izryadnova noted that amid a relatively favorable global market environment Russian extractive industries, particularly hydrocarbon production, still demonstrate growing profit margins, open up new lines of exports and make higher contributions to the economy with accumulation of sufficient foreign currency funds.
Further, Olga Izryadnova pointed to the positive momentum of the agriculture and mobilization of competitive and import-substituting capacities in such sectors as the light industry, consumer electronics and the furniture industry, particularly owing to the formation of alternative parallel import channels on new loyal markets.
Olga Izryadnova noted that amid growing uncertainties the situation in the machine-building complex is rather challenging. “At the same time, positive aspects related with engagement into manufacturing and logistics chains of new domestic partners with sufficient import-substituting competences, as well as alternative suppliers of component parts and finished goods from external markets helped slow down adverse trends in manufacturing of individual types of machines, equipment and transport vehicles and in related types of activity, too,” Olga Izryadnova said.
Olga Izryadnova believes that the adaptability of Russian manufacturers to the shrinking domestic market and appreciation of the Russian ruble is taking place in two directions. On one side, there is a concentration of business activities in industries compensating for a fall in imports on the domestic market because of sanctions. On the other side, alternative production, transport and logistics chains are being formed for filling in niches on the markets experiencing tougher cross-border cooperation restrictions.