MOSCOW, August 25 (RIA Novosti) - Russia has entered a negative stage in the economic cycle and should invest in its own development, Alexei Ulyukayev, Russia’s minister of Economic Development, said in his article published in the Vedomosti newspaper Monday.
“It could be said that we have entered a negative stage of the economic cycle. Lack of demand is a significant obstacle on the way to restoring steady growth. In these circumstances, a decrease in government spending will only intensify the negative trend in the national economy, which, in turn, will hinder improving fiscal performance,” Ulyukayev said.
The Russian economy began stagnating in 2012 due to weak domestic growth rather than the changing geo-political environment. However, the minister also noted that now is a good time to invest in the country’s development.
“Having introduced import restrictions in response to the sanctions, we are presented with a great opportunity to develop crucial sectors such as agriculture and food processing,” the article noted.
On August 7, Russia imposed a ban on food imports from the United States, the European Union, Australia, Canada and Norway in response to Western sanctions. The ban targets meat, seafood, dairy products, fruit and vegetables and other foods.
The West has been implementing sanctions against Russia over its alleged role in the escalation of the Ukrainian crisis. Moscow has repeatedly denied the allegations and called for a peaceful resolution to the conflict, in addition to sending humanitarian aid to the troubled regions in Ukraine.
