Strong ruble is one of the challenges facing Russia's economy - economic development minister

MOSCOW. Dec 2 (Interfax) - A strong ruble resulting from a large trade surplus is a challenge for the Russian economy, Economic Development Minister Maxim Reshetnikov said at VTB Bank's Russia Calling! investment forum.

"We have several challenges that we must discuss. One of them is the strong ruble," Reshetnikov said.

Reshetnikov said that when looking at the largest projects currently being financed, all of them are export-oriented, with estimated export volumes reaching between $50 billion and $70 billion in additional exports per year in the near future.

"We must consider what to do with the trade balance, which is already positive at $120 billion per year, and these additional export opportunities will come on top. This is a gigantic challenge," Reshetnikov emphasized.

"We have halved our external debt or even more, because there is no longer any potential for capital outflow that we have had for the past three years. We have a major issue with imports, given that many industries have announced import substitution strategies, and certain barriers exist in this regard, and this strategy will have to be maintained for the time being," he said.

"There is only one way out strategically, and that would be our ruble exchange rate being substantially stronger than we thought it could be a year or two ago. We have already strengthened it in our forecast, but we will return to the issue in April," Reshetnikov said.