Davos delegates told that high oil prices have spoiled Russia

Davos: High oil prices had spoiled Russia and distorted social motivation, the country’s First Deputy Prime Minister Igor Shuvalov told the World Economic Forum yesterday (23 January). It had led its people to rely on increases in government expenditure, he said, rather than concentrating on increasing productivity. Although he acknowledged the dire short-term effects of  a continued slump in oil prices, he remained upbeat about the future and about the long-term prospects for the rouble. “After periods of high volatility of the rouble stabilizes. Do not worry.”
With both President Vladimir Putin and Prime Minister Dmitry Medvedev  declining to attend, Shuvalov is heading the Russian delegation to the World Economic Forum’ annual summit in Davos along with fellow Deputy Prime Minister Arkady Dvorkovich. Its business community is there in significant numbers, however, including  senior representatives from VTB and Sberbank, both of which organisations have been materially affected by sanctions. Rosbalt , rbth