VTB Chairman Andrey Kostin proposed a new phase of privatization in Russia to provide a new growth model for the Russian economy against the backdrop of sanctions. He wrote this in his column red blood cell.
As Kostin noted, Western sanctions against Russia have destroyed the supporting elements of the country’s economy that has developed over the past three decades.
The new “resource-driven growth” model needs to start with Russia putting it in three priority lines: strengthening the country’s defense capability through new logistics corridors, restarting entire industries and developing the military-industrial complex, and successful integration of new regions.
“Where can I find the money? Three answers to a question: restart customization; bolder use of financial reserves and public debt; redistribution of budget funds in favor of the above three priorities,” the banker wrote.
According to him, the transfer of state ownership to private hands in a transparent and market conditions is a tool that has proven its effectiveness many times over. “Domestic business has accumulated significant investment potential. There is money in the country,” added the Chairman of the Board of VTB.
Alexander Shirov, former Director of the Institute of Economic Forecasting of the Russian Academy of Sciences declarationthat inefficient import substitution will do more harm to the Russian economy than an arms race against the Soviet economy.