Economists’ forecasts, including the specialist of competent company «Standard & Poor’s» appeared to be worse, than real condition is in Russia. Despite of great foreign pressing economic situation in regions remained stable.
After implementation of economic sanctions and slumping of oil prices many experts predicted dramatic deterioration of financial indexes in Russian regions. Though we can’t say that these indexes have risen, deterioration isn’t so visible. Curiously enough, collapse of ruble and government support helped the situation.
Government support was expressed in crediting regions along with simultaneous lowering credit rates in 27 (!) times up to symbolic 0,1%. Also increased fiscal charges in the first half year of 2014 effected financial indexes. In addition, collapse of ruble helped the petroleum and export –oriented regions – Sahalin and Tumen regions, Yamal-Nenets and Khanty-Mansiisk autonomous districts - that in its turn led to ruble profit growth.
Another way of cost reduction became wage freeze of public sector employees, including parliament staff and reduction in maintenance of officials.
As a result, debts – growing rates in regions turned out to be lower, than inflation and made only 5% from the begging of the year. In comparison, in 2013 similar debt increased in 35%.
If to look at this in a view of recent President’s initiatives, including “deoffshorization” and “tax holidays”, along with support of new businesses and opportunities that can open up with the policy of import substitution, the prospects are not so bleak. As time goes economists from the past such as Henry Ford, Warren Buffet or Ron Hubbard, and their colleagues today are talking about quality production and high qualified specialists, that are valued at any times and can overcome any crisis.
So, as the saying goes “there’s life in the old dog yet”, it doesn’t allow the economics to spit out of control with the speed that “our foreign partners” aim to. And if the initiatives be implemented with a responsible (not to speak of talented) way, then the crisis will be passed through rather quietly.
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