Daily Memo: Restoring the Russian Economy

As rail traffic increases, Russian policymakers are unveiling expensive plans to goose GDP and lower the unemployment rate.

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Restoring the Russian economy. Alexei Kudrin, the former Treasury minister and current head of the Accounts Chamber of Russia, has revealed the details of a three-stage plan to improve Russia’s economy by increasing gross domestic product by at least 2.5 percent by 2021, lowering unemployment to 5 percent and jacking up real household income. It will cost some 5 trillion rubles, or about $73 billion, roughly $41 billion of which will be spent this year and the rest next year. The government will support the initiative with 1 trillion rubles from the acquisition of Sberbank. The plan has two objectives. The first is to restructure the state budget, including a review of ongoing projects and the redistribution of as much as 500 billion rubles. The second is to preserve the National Wealth Fund as much as possible in case of an unforeseen emergency, like a second wave of COVID-19 cases. Rail traffic. Demand for rail transportation between Asia and Europe is increasing. Rail freight volumes between China and Europe through Russia have grown despite a slowdown in global demand and production – an increase of 35 percent from January to May 2020 compared with the same period last year. Earlier, Russian Railways also reported an […]

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