Irrevocable losses

The return of the Russian economy to the previous growth rate of 5-7 percent per year is almost impossible, even if oil prices increase. This is stated in the materials of the Ministry of Economic Development prepared for the meeting of the Economic Council under the President, TASS reports .

"Our calculations show that even in conditions of high oil prices, i.e., above $ 50 per barrel, returning to the previous growth trajectory, 5-7 percent per year, is almost impossible," the document says. According to the Ministry of Economic Development, this is due to deep structural changes in the world economy, which goes into a state of "new normality".

The average Urals oil price in April amounted to $ 39.63 per barrel. The forecast of the Ministry of Economic Development for the next three years is designed based on $ 40 per barrel.

"Potential growth is now at the level of 2 percent and in the next couple of years we will return to this trajectory. However, these pace for the Russian economy is unacceptable, as they lead to a decrease in our share in the global economy, loss of competitiveness, a decline in living standards relative to most countries," the Ministry of Economic Development believes.

At the same time, the mayor argue that the decline in the Russian economy is largely completed and close to the lower point of this fall. "At the moment, the Russian economy is in a state of stagnation. The decline has been largely completed, the economic cycle is close to the lower point. In some points, we already see signs of recovery that will continue in the medium -term period," the materials noted.

On Friday, Vladimir Putin said that the "bottom" of the economic crisis in Russia can be considered passed in 2015. Minister of Economic Development Alexei Ulyukaev noted that the Russian economy has not been in the recession for more than six months.

On Saturday, the deputy chairman of the Economic Council under the President Alexei Kudrin said that the Russian economy would not grow and remain "at the bottom" if the authorities do not begin to decisively carry out structural reforms. “Since the old economy model has been worked out, and the new one has not yet formed, even having passed the“ bottom ”, we will remain on this“ day, ”Kudrin said.

The ex-Minister of Finance emphasized that the Russian economy lacks decisive actions by the authorities. “It seems to me that our economy is not enough definite determination now. We are delaying important reforms. This will be the reason and delaying the beginning of economic growth,” Kudrin believes.