Russian FinMin Says Country Needs Reforms

“Radical” changes in the global economy have left Russia in “dire straits,” and it should seize the moment to reform, the country’s finance minister has told CNBC.

Speaking on the sidelines of the G-20 summit in Istanbul, Russia’s Finance Minister Anton Siluanov said: “We all note that lots of changes are happening, and these change are radical and rapid.”

Russia’s economy has been hit hard over the last year by the severe decline in global oil prices – down around 50 percent since last June — and Western sanctions imposed on the country for its part in the Ukraine conflict. This, in turn, has caused the ruble to weaken dramatically and pushed up the rate of inflation to around 15 percent.

The “hardships” facing Russia have slowed down the pace of growth, Siluanov said, but should encourage the Russian authorities to reform.

“In the times when all prices were soaring, when inflow of foreign currency was substantial and when the ruble was strong there was lots of room for complacency,” he said. “Now that we’ve found ourselves in dire straits, we have no choice but to carry on with the reform that has been postponed for so long.”

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza