Developing practice of secondary sanctions complicates real sector's adaptation to new conditions, must be accounted - Central Bank deputy governor
MOSCOW. Nov 22 (Interfax) - The Russian economy's dynamics are better than expected, though there are a number of issues related to restrictions on Russian exports and imports, and these must be taken into account, Central Bank Deputy Governor Alexei Zabotkin said at the International Forum of the Financial University.
"In our opinion, the Russian economy's dynamics have performed better in the second half of the year than had been expected in the spring," Zabotkin said at the forum.
"There is still the question about what will happen to the physical volumes of our exports in the face of the tightening sanctions regime. We have yet to see how the decisions that have already been taken will affect the ability of our companies to sell their products abroad. There is the question of a balance between price and volume," the Central Bank's deputy governor said.
"The sanctions regime is also being tightened on the import side. We see evidence that our foreign non-partners are increasingly advancing the practice of secondary sanctions. This is what hinders the adaptation of the real sector, and we must take this into account," Zabotkin emphasized.
Zabotkin said that the need for adapting leads the Central Bank to say that inflation in Russia could remain at a slightly elevated level longer than under conditions that are more normal. Consequently, there will likely be inflation of 5%-7% in 2023, and it should return to the target of 4% in 2024.