Oleg Deripaska, Russian oligarch, argued that the country may run out of money and needs foreign investment next year. At a conference in Siberia, the oligarch announced that next year, there would be no money, thus the country needs foreign investors. This comment refers to TASS, a Russian state-owned news agency.
It was somehow in contrast to the assessment of Russia;s economic fortunes delivered by President Valdimir Putin last week. In his words, Mr Putin is confident that Russia’s economy is resilient. Although Russia now is facing unprecedented Western sanction in the past year, it is still resilient. Meanwhile, based on the preliminary estimate from the government, the country’s economic output plunged 2.1%. It is actually more limited than many economists have predicted.
However, economic problems are showing. This month Russia has cut oil production. In addition, things could get even worse with Western sanctions. Therefore, Russia’s economic prospects might be at trouble. Deripaska noted that foreign investors from friendly countries would be a big help. In order to make this happen, Russia must create the right conditions and attractive markets. However since February 2022, there have been 11.300 sanctions. This sanction is to starve Russia of funds within the aggression. Plus, it would freeze some $300 billion of the country’s foreign reserves.
On the other hand, China has put Russia in an economic lifeline. For example, China continues to consume Russian energy. The country also replaced Western suppliers of machinery and other base metals. In addition, China has provided Russia an alternative to the U.S. dollar.