Russian President Dmitry Medvedev warned Monday that Russia”s economy should brace for a “tough year” and that signs of recovery shouldn”t be expected before 2010.
“We understand that the global financial crisis has not reached its peak yet,” he said at a televised Kremlin meeting with Prime Minister Vladimir Putin and other ministers and advisors.
Russia will not have capital inflows “in the amount we would like to see” for a long time, Medvedev said.
But Medvedev sought to give assurances that Russia”s 8 trillion rubles ($224 billion) in rainy-day funds would mitigate the ill effects of the global meltdown and allow vital social spending to stay on track.
“We are going to maintain budget spending this year without resorting to excessive and expensive borrowing,” he said.
Medvedev asked the government to step up their efforts to fight the consequences of the crisis, without elaborating.
Sliding oil prices have humbled the Russian economy, which is facing its worst financial crisis in a decade. Russia is considering redrafting its budget on the basis of $41-per-barrel oil, down from the originally projected $95.
