The bleak assessment of the Russian economy contrasts with Putin’s rosy claims

Mr. Sobyanin a. written in blog post That the newly unemployed could work in city parks, service centers and public health pavilions, “an opportunity to do useful work and acquire new skills.”

in one Presence In the lower house of parliament, Russian Central Bank President Elvia Nabiullina gave a more far-reaching, negative assessment. She told lawmakers that the impact of the sanctions had previously been largely on financial markets, but that they would now “begin to increasingly affect real sectors of the economy.”

For example, she said, “practically every product” manufactured in Russia relies on imported components. For now they can still be kept in stock in factories. But because of new Western export restrictions, Russian companies will be forced to relocate their supply chains or create their own components.

“At the moment, perhaps this problem is not yet felt so strongly, because the economy still has reserves, but we see restrictions being tightened almost every day,” she said. “But the period during which the economy can live on reserves is limited.”

Ms. Nabiullina, an internationally respected central banker who reportedly tried to resign In the days following the war, nearly half of the central bank’s $600 billion in foreign exchange and gold reserves were frozen by sanctions. He said the reserves the bank still controlled were mainly gold and yuan – of little use in trying to stabilize the ruble – forcing the bank to resort to capital controls such as how much from the country. Foreign currency can be taken.

In his televised videoconference with Ms Nabiullina and several other officials later in the day, Mr Putin acknowledged that the Russian economy was facing some problems, including inflation. He said he had already directed state employees’ pensions and salaries – part of Mr Putin’s political base – to be adjusted for inflation and indicated he supported greater government spending to stimulate the economy. Did.

“The budget must actively support the economy, saturate the economy with financial resources, and maintain its liquidity,” Mr. Putin said. “There are opportunities for this. Of course, we need to act with caution.”

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