Medvedev admits that sanctions have negatively affected Russia's economy

The Prime Minister of Russia, Dmitry Medvedev, stated in an interview with First Channel that sanctions and external pressure have affected the Russian economy. According to Medvedev, economic growth depends on many internal and external conditions. The Russian Prime Minister said that a very serious slowdown of economic growth has been observed all over the world.

“We understand the conditions under which our economy is developing. Unfortunately, it was cut off from foreign sources of funding as well as from all foreign suppliers who were giving orders to our producers,” the transcription on the government’s website quoted him as saying. Medvedev explained that the matter hinged on sanctions and so-called external pressure on the country.

“I will tell you straight. Sanctions… it is bad but it isn’t the main thing. As is known, structural problems have accumulated in our economy over decades. This means that deformations are in the economic system itself,” Medvedev said. Earlier, he wrote an article on the state of the Russian economy in which he stated the need for complete renovation of economic system.

“We have to create a new model of economic development that is able to ensure our country a significant place in the modern world. This isn’t a trivial task, although Russia faces this task not for the first time. In the past, the country managed to find answers to global challenges. There is no reason to believe that the situation will be different this time,” the Prime Minister wrote.

Medvedev also promised that Russia will continue to move towards external economic openness through the creation of free trade areas with separate countries and groups of countries and the conclusion of preferential trade agreements.

  Russia, Economy of Russia