Russia succeeded in what the USSR failed

Russia’s Economic Development Minister Maxim Oreshkin believes that the country has managed to achieve sustainable economic growth even with low oil prices.

“This is where the Soviet Union failed, when in 1985-86 oil prices fell. This is what brought about a very big crisis in 1997-98, when oil prices were also dropping,” Oreshkin said in an interview to Business FM.

According to the minister, within last three years, the Russian economy has adjusted to low oil prices, while before that it was dependent on the oil prices that were over $100 per barrel. “Everything will be fine with the state budget and balance of payments, even if the oil prices gets lower than $40. We used this price as a basis for our macroeconomic policy,” Maxim Oreshkin said.

To remind, in mid-September, the Economic Development Ministry raised average oil price in its macro-forecast, while the minister stated that the oil market was close to balance and no substantial price fluctuations are to be expected.