RIA Novosti: Russian ex-finance minister sceptical about aid to Ukraine, other issues

(RIA Novosti – December 23, 2013) Russia’s former Finance Minister and Deputy Prime Minister Aleksey Kudrin has expressed concern that Ukraine may spend the funds provided by Russia only to cover its day-do-day expenses, in which case Kyiv will need more economic assistance in two years’ time. Kudrin was speaking at his end-of-year news conference at Russian state news agency RIA Novosti’s office in Moscow on 23 December, where he also commented on Mikhail Khodorkovskiy’s release from prison, the state of the Russian economy, protest leader Aleksey Navalnyy, and other issues.

Ukraine

“On the whole, I support the measures to support Ukraine, despite the fact that they are somewhat more expensive for Russia than they could have been. Partially, we are covering this mistake of the government of Ukraine and the consequences of the political crisis,” Kudrin said.

“It turns out that, judging by the statements, we are not even setting any conditions. We should have an idea how these funds will be repaid. If they are spent on day-do-day expenses, another tranche will be needed in two years’ time… The Ukrainian economy has been stagnating even longer than ours. Under these conditions, Ukraine conducted negotiations to sign an association agreement [with the European Union] for four years, then, suddenly, with just one or two weeks left, decided that it was wrong. Here the full responsibility rests with the government, which was apparently either mistaken or ignoring the economic reality. Suppression of these expectations led to protests. A pause is required to settle processes in the country,” Kudrin added, according to privately-owned Russian news agency Interfax.

Commenting on the decision to cut the gas price for Ukraine, Kudrin said that this could have a negative impact on the stock market value of Gazprom.

According to RIA Novosti, Kudrin said: “For me, the reduction in the price of gas is the most important thing. Gas prices must be market prices for everyone… It is unpredictable why the price is changing so significantly against the market. Everyone will pay for it, including Gazprom’s shareholders, including private ones,” Kudrin said, noting that this decision could also affect the value of other companies owned by the Russian state.

Russian economy

“This year and next year will be the worst years since 2000, not including the crisis year of 2009. They are not just bad, this is not a temporary, momentary deterioration. For itself, Russia has fallen into a new trend, which is connected with the outdated old model of growth and the absence of main support points for a new model. A new model is not being formed actively, and until that happens, we are in a medium-term or perhaps longer-term stagnation period,” Kudrin said, as shown on Gazprom-owned channel NTV.

Khodorkovskiy’s release

“I think the key factor was that he [Khodorkovskiy] signed papers or pledged that he would not be involved in politics or the recovery of his assets. This solves all problems, especially if he stays out of Russia, this will not create difficulties for domestic policy or economic threats to Russia… I think that, in the political sphere, this is an important event of the year, and I welcome this decision,” Kudrin said, according to Interfax.

He noted, however, that Khodorkovskiy’s departure to Germany looked like an “expulsion” from Russia, which “kind of devalues” the positive effect that Khodorkovskiy’s release could have had on Russia’s investment climate, RIA Novosti quoted him as saying.

Kudrin added that he would be ready to cooperate with Khodorkovskiy for the development of civil society in Russia.

Navalnyy

The Justice Ministry should register protest leader and opposition blogger Aleksey Navalnyy’s People’s Alliance party, Kudrin said.

“I support free registration of the leading political forces. We need to strengthen the channel of political institutions to broadcast citizens’ political intentions, so that the political structure becomes clearer,” Interfax quoted Kudrin as saying.

Kudrin noted that the 2013 Moscow mayoral election, in which Navalnyy came second, had changed the political situation in Russia. “These were unexpected results. I think the Moscow mayoral election changed the political situation in the country, and the authorities were forced to focus more on optimizing the political situation, to agree to something, to put up with something,” Kudrin said, according to RIA Novosti.

Criticizes “anti-Western rhetoric”

“The law on foreign agents is a significant blow to civil society. It needs serious amendments, or it would be better to revoke it. Amendments are primarily needed for the notion of political activity. Today, this notion also includes civic activities. The single history textbook is also controversial. The dominance of security and law-enforcement agencies and their special role in the country – these are all elements of a non-modern society, elements of archaism,” Kudrin said, according to Interfax.

“First of all, I am concerned about anti-Western rhetoric. We are finding our place in the global system, looking for the best world practices, and at the same time anti-Western rhetoric is being drummed up. What is happening today essentially throws us back,” he added.