Leonid Grigoriev believes Russia is becoming an oil state of Latin America type

26 december 2013

On December 25, 2013, Leonid Grigoriev, Chief Adviser to Director General of the Analytical Center, took part in the Economics of Russia: 2013 in Review and Prediction for 2014 round table held at the RIA Novosti press center. Experts discussed measures to achieve economic growth, factors that hinder GDP growth, and challenges Russia's economics will face in 2014.

Leonid Grigoriev says all states in the world are now having a rather hard time, with Russia "growing as compared to developed countries". "It is not easy for Americans to handle this, the Japanese are hesitating, Asia and Brazil have slowed down. Ukraine has already had zero growth, which is great for them," says Grigoriev. He believes that given all this "no physical growth of export for Russia is a rather good result".

Grigoriev thinks the situation in the country is as follows – "consumption built by import rather than domestic production keeps growing, So the rapid fall of GDP in this case while export is stable is a natural thing, which means "net export" decreases. He believes the state should increase costs yet "it does not want to, fearing the 1990s mistakes".

Grigoriev does not think it is fatal until oil holds at $100 per barrel. It is not fatal, it is depressing. Our country is transforming into an oil state of Latin America type that only eats money received by its budget and does not think about the future, says the expert. The round table video is available at the RIA Novosti press center website. Photos courtesy of RIA Novosti.