Russians will become 30% poorer if oil and gas prices drop dramatically, according to former chief economist of the European Bank for Reconstruction and Development Sergei Guriyev.
The economist claims that if oil is no longer in demand Russians will become 30% poorer. The scenario is possible in case of transition to alternative energy.
Currently, oil and gas revenue accounts for 25% to 30% of Russia’s GDP. However, services make up the major part of the economy. The exact same situation exists in countries that are wealthier than Russia – for example, the United States, Lenta.ru reports.
Sergei Guriyev believes that Russia will not become a poor country due to falling demand in oil and gas because it will still have significant potential in agriculture, tourism and high tech.
Losing oil and gas as the source of money may, on the contrary, have a positive impact on the Russian economy. It may result in young people choosing, for example, a software development career in favor of the oil industry.
The economist added that there are plenty of countries that exist without oil. Therefore, thinking that Russia will not be able to do without it is racist.