The Russian economy is entering a period of challenging structural transformation due to the sanctions imposed by Western countries, according to Central Bank Governor Elvira Nabiullina, TASS reports.
According to the head of the megaregulator, the sanctions are already affecting Russia’s financial sector and the real sector of the economy is about to feel their effects as well.
Elvira Nabiullina explained that reserves are keeping the country afloat; however, Russia is about to enter a period of structural changes as soon as the second or early third quarter (that is, in summer).
“Economic transformation is a harsh process,” Sergei Khestanov, economist and Associated Professor at the Russian Academy of National Economy and Public Administration (RANEPA) warns. “After the previous transformation (perestroika) the quality of life took 15 years to restore.”
Earlier, the Central Bank lowered the key rate from 20% to 17% following the ruble’s slight strengthening. Inflation pressure persists hindering the regulator from stimulating the economy.