A recent report issued by the Russian Central Bank announces a growth of 1.5 -2% for the economy this year. Based on the scenario of the volatile oil prices, the National Bank’s chief declared that the Russian economy will not be too affected of the prices going down. During the same press conference, the minister for finance said that 2018 could mean the introduction of cryptocurrencies in Russian banks. Our lawyers in Russia can offer information on the current banking legislation applicable in this country.
The economic growth pace for Russia will pretty much depend on the “structural transformation” announced by the government and less on the oil prices which will not contribute by more than 1% to the Gross Domestic Product. The highest price of oil per barrel is expected to revolve around 60 USD this year and this is the main reason it will not have that much influence on Russia’s economy.
According to the chief of the National Bank, the economy will not grow past the 2% threshold and the main contributors to this increase are expected to be the income generated by the transportation services and the electricity consumption levels which have been positive since the beginning of the year. Also, the minister of finance announced an increase in the foreign investment levels.
Cryptocurrencies are the latest trend among banks all over the world and could be a really help for the Russian economy in the years to come. The minister for finance declared that starting with 2018 the introduction of digital currencies has great chances of becoming a reality. Moreover, the Central Bank could also consider the introduction of a national digital currency which would also need the creation of a supervisory authority to oversee the transactions carried out by Russian companies using it.
Based on this announcement and on other measures to be undertaken by the government, the International Monetary Fund predicted an economic growth of 3.8% by the end of 2021 for Russia.
Foreign investors interested in starting a business in this country can contact our Russian law firm for assistance.
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