He recently clashed with Prime Minister Mikhail Fradkov over national progress to a doubled gross domestic product. Many viewed their dispute as a government crisis. In fact, it was an ordinary fruitful discussion, Mr. Gref said to the Moscow-based magazine Itogi (Summing-Up) in an interview.
The Ministry of Economic Development and Trade forecast an annual 6% as national economic growth rate. It is even quicker now, pointed out the minister.
As for building up petroleum exports, there is every chance to do so, though the available infrastructure harasses transportation, he added.
The Russian economy closely depends on petroleum prices. Thus, all social welfare expenditures are earmarked proceeding from smaller prices than actual-a modest $20-22.5 a barrel for next year, and $20 for 2006-07. Russia will easily afford the expenditures unless actual prices get below twenty dollars. If that is so, the Stabilisation Fund will make up for the scissors, said Mr. Gref.
He discerns lucrative economic trends-suffice it to mention metalworking and engineering, with growth rates doubling the national average. Industrial updating stays the biggest problem. It requires capital invested and cutting-edge technologies implemented, especially in import-dependent industries.
German Gref disproved rumours about privatisation reversed, which started with tough police moves. Russia will certainly not U-turn privatisation while the present President and Cabinet stay at the helm. What Russia now needs is an efficient bankruptcy routine, with its healthy workings that cleanse the economy, he stressed.
As for the devastated Chechnya, its economy has every chance to regain efficiency within the next ten years, said Mr. Gref.
