The head of VTB24 predicted strengthening of the ruble in 2016

The ruble will strengthen by year end from current values, the recession of the Russian economy in 2016 will continue but the decline will not exceed 1 per cent, even if average annual oil prices in the $ 35-40 per barrel, expect to VTB24.

As the head of the retail “daughter” VTB group, former Deputy Minister of Finance Mikhail Zadornov in an interview to “Russia 24”, such macroeconomic parameters will fall in the updated business plan VTB24 and, in many ways, and VTB. “What we are now discussing in the refinement of the business plan? We expect that from today’s values of course, the ruble will strengthen by the end of the year,” he said.

“We look forward to the continuation of the recession, the recession this year will be within 1%. It is unlikely he will make even more when the average annual price of 35-40 dollars per barrel,” — said Zadornov. He noted that the Bank expects inflation to 8 percent in the first quarter and 7-7,5 percent by the end of the year. Zadornov stressed that, of course, this will largely depend on fluctuations in oil prices. “We expect that in the first half or the first quarter the oil price will find its bottom border and later, in the second half, the stabilization of prices or a slight increase,” — said the head of VTB 24.

Capital outflow, which in 2015 was about $ 65 billion, this year will be reduced, expect to VTB24. “Because reduced payments on foreign debt, will decrease the inflow of foreign currency into the country due to falling export prices. And the population is no longer an active player in the market of capital outflow, because in 2015 or in January 2016 was not engaged in the active purchase of currency, apparently because of large reserves of ruble savings gone,” said the former Deputy Minister of Finance.