Investments in Russia’s economy declining both because of structural problems, oil price drop – Putin

Diverse Paper Currency, Coins, Line Graph

ST. PETERSBURG. June 18 (Interfax) – A decline in investments in Russia’s economy can be explained by both the lower oil prices and investors’ worries about problems in Russia’s economy, Russian President Vladimir Putin said.

“It’s both this and that,” Putin said while meeting with top managers of international news agencies in St. Petersburg on Friday, when asked whether the decline in investments in Russia’s economy could be explained by a drop in oil prices or investors’ concerns about structural problems in the Russian economy.

Putin acknowledged that Russia’s economy is heavily dependent on oil prices.

“After all, it is related to the oil prices, because oil revenues are lowering, and significant investments in past years were related in large part to oil, gas, the energy sector in general, and infrastructure around it,” he said.

“Look at major energy companies’ investment programs. How can they invest in expanding production the way they planned earlier if the demand has decreased? This is why investments are decreasing,” he said.

 

Comment