Russia’s economy cannot survive indefinitely with its financial reserves and must be transformed to cope with the effects of international sanctions, Central Bank Governor Elvira Nabiullina said on Monday.
In her most important speech since the start of the Russian invasion of Ukraine, Nabiullina estimated that inflation would return to the 4% target in 2024.
“The period in which the economy can live on stocks is finite. And already in the second and third quarters of the year we will enter a period of structural transformation and the search for new business models,” he said.
The sanctions had mainly affected the financial market, “but now they will start to affect the economy more and more,” he said.
“The main problems will be related to restrictions on imports and the supply chain of foreign trade and in the future to restrictions on exports,” he said, adding that Russian companies would have to adjust.
“They should look for new partners and logistics or focus on producing products of previous generations,” he said.
Exporters will have to look for new partners and logistics and “all this will take time,” Nabiullina said.
She described various measures to help the economy adjust.
The central bank is considering making it more flexible to sell foreign exchange earnings to exporters, he said, and is also considering issuing digital rubles to allow Russians to make transfers between digital wallets.
Pilot operations related to the project were scheduled for the second half of the year, he said.
Source: Capital
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