Russia facing economic challenges

Russian Minister of Finance Aleksey Kudrin has stated that even if the oil price goes up and reaches USD 55 a barrel the decline of the Russian economy will continue. According to his prognosis there is almost no possibility of increasing budgetary revenues.

The Minister acknowledged that investors keep leaving Russia. He said that in January 2009 around USD 40 billion was transferred out of Russia, and that compared with the January last year the Russian economy has contracted by 8.8%.

The results of the economic crisis could be very serious for the country. General Prosecutor of the Russian Federation Yuri Chaika has admitted the possibility of social tensions in Russia growing due to the economic crisis. This might provoke inter-ethnic and inter-confessional conflicts in the country which would threaten the state’s structure and security.