“This is not a war economy.”Russian Economy Minister tells Hadley Gamble

labiba - | World

Russia's Deputy Prime Minister Alexander Novak downplayed the effect of Western sanctions on his nation's economy in an exclusive interview with Hadley Gamble of Al Arabiya English. He cited the IMF's growth estimates of 3.2 percent for 2024 and the fact that Western nations continue to import Russian goods.

According to Novak, Russia's economy is a "supply kind of economy" that is being built to suit all requirements, including social ones. "I definitely do not believe that this is a war economy," Novak stated.

"To make sure that traditional industries run sustainably, we are investing in high-tech industries," he continued.
Many in the West interpret President Vladimir Putin's recent move to increase taxes as an admission that the sanctions—which were put in place in the wake of Russia's invasion of Ukraine in 2022—have had some effect.

Novak, however, characterized the tax increases as a "fine-tuning" and betterment of the current framework. In order to support needy families, he clarified, the primary objective is to "ensure a fair distribution of the tax burden between individuals and households... having the affluent pay more taxes."

While acknowledging the effectiveness of Western sanctions, Novak argued that they had forced Russia to shift its emphasis from importing goods to more indigenous industries and R&D centers.

He informed Gamble, "We have been able to increase the growth of the domestic market and consumption thanks to the sanctions, which has increased our gross domestic product."
Pushing back against the narrative that Russia is playing catch-up with Beijing, Novak told Gamble that Moscow and Beijing have a fair and mutually beneficial relationship. She also highlighted the growth of trade and economic relations with various “friendly” countries and the opportunities that exist for small and medium-sized businesses.

"We put quite a few of these with whom our relations have been developing for a lengthy period of time," Novak stated in reference to the friendly countries. Thus, we are able to establish trade and economic ties with them now. We forge new paths of collaboration, which the Russians can readily justify as they are providing us with fresh chances for small and medium-sized enterprises to flourish, to increase trade, and to launch new ventures in order to generate more revenue for rising wages.

He went on to say that Russia's rate of salary growth is "very high," higher than it was prior to the sanctions.
Regarding Russia's possible reintegration into the world economy and cooperation with the US, Novak stated that the nation has not faced any difficulties as a result of "unilateral restrictions." He mentioned Russia's continued partnerships with a number of countries.

"Europe continues to receive Russian crude, and certain products continue to be shipped to the United States," stated Novak. "Aircraft manufacture still requires the shipment of metals to France. Thus, the Russian economy is not isolated even at this moment.
Decisions made by OPEC+ take geopolitical factors into account and have a direct impact on the oil markets, according to Novak. Nonetheless, competitive pressures from renewable resources and strategic concerns like energy transition are the main drivers.

According to him, there are also short-term factors like economic demand and rate increases by central banks.

"There are other uncertain factors, such as the current Middle East situation, which certainly has an impact," he stated.

According to Novak, the decision-making process is intricate overall.

"We take long-term implications into account in addition to short-term factors when making decisions," he stated.

About Author

29 Total posts

Read Also

People don't want chaos': How criminality fueled the far right in France

For two weeks in July 2023, when youngsters in French housing estates rioted over the police killing of an unarmed adolescent of North African heritage close to Paris, Tom Maiani was behind the wheel of his automobile every night, every night.

Julian Assange will arrive in Australia, and father claims he never gave up.

After ten years of fighting for his son's release, John Shipton, the father of Julian Assange, could exhale with great relief on Wednesday.

As Afghan opium production falls, the UN issues a warning about overdose deaths.

According to a UN assessment released on Wednesday, the collapse of opium production in Afghanistan, which was once the world's leading supply, due to Taliban orders may increase the number of overdose deaths as heroin addicts move to synthetic...

"Shaken to the core": When protests become fatal, Kenya is started.

Kenya was in disbelief on Wednesday after extraordinary events that destroyed and set portions of parliament on fire, leading President William Ruto's administration to use force to quell fatal protests against planned tax increases.

Israeli bombs in Gaza result in11 deaths, while tanks continue to toward Rafah.

At least 11 Palestinians were killed in two Israeli attacks on humanitarian supplies on Monday in Gaza, according to medical professionals. Meanwhile, Israeli tanks continued to advance into Rafah in the south and retook regions in the north that...

Experts warn that the Earth is not prepared for wildfires

According to scientists, the globe is ill-prepared for the growing intensity of wildfires fueled by climate change, as flames spanning North America to Europe welcome the northern hemisphere summer in the warmest year yet recorded.

Khamenei demands "maximum" participation in the upcoming presidential elections

Iran's supreme leader denounced lawmakers who he said believed that everything beneficial came from the United States and asked for "maximum" voter turnout in this week's presidential election in order to "overcome the...

WHO Regional Director: Syria's neglected health problem requires treatment

A senior WHO official stated that the world has forgotten about Syria's broken healthcare system and called for innovative solutions to stop the country's medical personnel from leaving.

On the last day of voting in Parliament,ballot boxes open in20European countries

As the war rages in Ukraine and anti-immigrant sentiment grows, voters in the European Union are worried that a potential tilt to the political right could impair the bloc's ability to make decisions. This is the reason why many are flocking to...

Why is immigration a big issue in the British elections?

One of the main battlegrounds of the forthcoming election will be immigration, as British Prime Minister Rishi Sunak has promised to reduce immigration levels if his Conservative Party wins next month's election.

The President of India wins the elections and China congratulates him

Following Indian Prime Minister Narendra Modi's election victory on Wednesday, China congratulated him and said it was "ready to work" with its neighbor.

Israel is ready to take “strong measures” near the Lebanese border

During a tour of Israel's northern border with Lebanon on Wednesday, Israeli Prime Minister Binyamin Netanyahu declared that his country was ready for forceful action in the north. Tuesday saw fierce fighting erupt in Gaza following calls from...

Hunter Biden's ex-wife and family members appear in court on gun trial

In order to demonstrate to the jurors that Hunter Biden's drug addiction persisted at the time he purchased a firearm and, according to the prosecution, lied on a form to do so, federal prosecutors have spent hours presenting the jury with proof...

Early results indicate that India's Modi is headed for a diminished majority.

Even though Indian Prime Minister Narendra Modi's alliance is leading in the general election vote count, preliminary figures reveal that they will not achieve the landslide victory projected by the exit polls.

An Iranian advisor was killed in an Israeli raid on the Syrian city of Aleppo

According to Iranian media, an aide perished in an Israeli strike that claimed the lives of 16 members of pro-Iranian groups early on Monday in Aleppo, in northern Syria.

British Prime Minister pledges to limit immigration visas

Following the opposition's announcement of its plans regarding the crucial election issue, the ruling Conservative party on Monday unveiled proposals for new yearly limitations on work and family visas in an effort to reduce immigration.

Japan is at a loss over the size of cash payments to about 23 million people despite a fixed 2024 tax cut

Under the fixed-rate tax reduction system that began in June 2024, local governments will play a major role in implementing the project, along with businesses. This is because, in addition to the administrative duties for reducing resident taxes,...

Macron needs to do more to defuse the tension

The pro-independence political party of New Caledonia has informed French President Emmanuel Macron that it is unable to urge demonstrators to take down barriers around the French Pacific region because they are not confident Macron will abandon a...

Bharatiya Janata Party 2024 Live Updates

June 4, NEW DELHI (Reuters) - Early vote-counting patterns for Tuesday's general election suggested that Indian Prime Minister Narendra Modi's alliance was capturing a majority of seats, but far short of the landslide anticipated in exit...

Elections in South Africa: What you should know before historic coalition negoti

The African National Congress, which helped free the nation from apartheid in 1994, lost its 30-year majority, but that is about all that has been determined by the election in South Africa.

On the last day of voting in Parliament,ballot boxes open in20European countries