Prime Minister of Russia Mikhail Mishustin in his first report to the state Duma praised the outgoing government, noting that they were created all the prerequisites for a breakthrough in the national economy, RIA Novosti reported.
As the reasons for the failure of a sharp rise, he called the coronavirus pandemic affecting the world economy, and became largely a consequence of the fall in oil prices.
According to mishustina, the level of debt in the amount of 12.3 percent of GDP and foreign exchange reserves of 554 billion dollars, gave rise to hopes for change, but now due to external factors, the situation changed.
As a result of “action by individual countries to increase production of oil” in the market to create imbalance, and the volatility of financial and foreign exchange markets led to capital outflows.
The Cabinet of Ministers under the leadership of Dmitry Medvedev resigned in mid-January. A month and a half, Russia has refused to increase the limit of oil production in a deal with OPEC, and the agreement collapsed. The situation led to a precipitous decline in oil prices to lows for the decade. The new deal, which entered into force on 1 may, is not allowed to recover the cost of raw materials, in spite of unprecedented dimensions limiting production.
Amid a sharp fall of incomes of the Russian authorities had to increase the national debt and to revise the parameters of the national projects, including to defer their implementation for six years, until 2030. Also of the goals is missing the entry of the Russian economy the fifth largest in the world.