The Finance Ministry came up with a way to avoid the strengthening of the ruble

“We have prepared a gift in honor of my birthday — a new version of the budget rule, under which we will withdraw all the additional revenue that must obtain if it will be high oil prices, into the Reserve Fund,” said Finance Minister Anton Siluanov on the Exchange forum, held Tuesday, April 12. According to him, it “will not allow the ruble and the negative impact of changes in oil prices on the growth prospects of the economy, inflation, interest rates, etc.”.

“This increase of price, raw materials — we do not need”, — concluded Siluanov.

The main consequence of the growth in oil prices is the strengthening of the ruble, which may decrease the competitiveness of our industries, the structure and quality of growth this worsens, explained Siluanov.

“The most important factor influencing economic growth is now, of course, is oil prices. “The rise in oil prices to ten dollars a barrel give 0.8-0.9 percent economic growth. But do we need such growth, which is not as high quality? The quality is poor in this growth, it with one hand. On the other hand, we again come to the lack of sustainable growth, but we need sustainable growth from year to year, and a rise in oil prices gives only a one-time jump,” added the Finance Minister.

Russia needs primarily investment growth, Siluanov believes. In his view, investors invest only when “the return on investment exceeds the risk.” “Let’s see what happened in 2015: there has been a growth of profit and profitability of our industries at the expense of rate changes. But where does this profit go? In dividends and not in new projects, investments, and payments to the members and shareholders of companies,” said Siluanov.

The reason is investor uncertainty, economic policy of the Russian authorities, I am sure Siluanov. “We need to give the right signals as act of economic power. And the signal here is clear: we can’t raise taxes, since this leads to the discouragement of the growth can not increase the budget deficit, as this would also negatively affect the General situation of Finance and monetary policy. Accordingly it is necessary to work more with spending,” Siluanov said.