#8 - JRL 7033
ACCORDING TO AIDE OF THE RUSSIAN PRESIDENT, HIGH OIL PRICES NEGATIVELY AFFECT DEVELOPMENT OF RUSSIAN INDUSTRY IN GENERAL
DAVOS (Switzerland), 24 January. /RIA Novosti correspondents Sergei Kudasov,
Borislav Pechnikov/. In his interview to RIA Novosti Andrei Illarionov, aide
to the Russian President on economic matters opined that high oil prices in
the long-term perspective were negatively affecting development of Russian
industry in general.
According to him, the present high crude oil prices, including prices on the
Russian "Urals" brand, at global energy markets are to be considered from two
points of view: factor of time and influence of that factor on various
sectors of the Russian economy.
Andrei Illarionov stressed that in the short term high oil prices were
profitable for the Russian budget as they were intensively replenishing its
revenue item. In the long-term perspective they were unprofitable as they
negatively affected different spheres of the Russian economy, especially
those which were not related to oil and petroleum-extracting industries.
The aide to the Russian President reported that annual oil production growth
in Russia amounted to 8-9%, while industrial production output in the last
several months decreased by 15%. He stressed that one might conclude that
presently the Russian economy stopped its development.
In addition to that, in his opinion, there was another negative aspect of
high crude oil prices consisting of practical lack of counteraction to growth
of real exchange rate oriented towards prices being formed in the area of raw
materials, particularly, oil resources.