Russian economy may not grow as expected next year

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The high volatility seen in the Russian market will remain for 6 to 12 months due to external factors, Russia’s Economic Development Minister Maxim Oreshkin said on the sidelines of the Eastern Economic Forum.

“Over the next 6 to 12 months, economic growth will not be as high as we expected, we also forecast high volatility in the foreign exchange market, something we are seeing now,” Oreshkin told TV Rossiya.

He added that volatility “comes from the markets of emerging economies” and “also has to do with ongoing sanctions.”

This comes as Moscow will bring to the UN Security Council the possibility of easing sanctions imposed on North Korea, Russian Deputy Foreign Minister Igor Morgullov said on the sidelines of the Eastern Economic Forum in Vladivostok.

“As North Korea moves towards denuclearization, the Security Council, in our view, can and should examine the possibility of adequately mitigating the sanctions regime imposed on North Korea,” Morgullov said.

Russia “will raise this issue as long as North Korea does what it needs.”

At the same time, Russia’s Foreign Minister Sergey Lavrov said that the US’s desire to introduce sanctions under any pretext is doomed to failure.

According to the minister, for the US it is already as a “mantra” resorting to restrictive measures “for anything”.

“I do not think it’s possible to have lasting successes with this kind of policy,” Lavrov said.

The head of Russian diplomacy expressed hope that in the US “they will come to understand that we must fight together against threats like terrorism” instead of “trying to play against each other as it is now in Syria.”

North Korea and Russia are building closer economic relations, with Moscow identifying the key location that the Korean peninsula occupies. As the Russian Far East, particularly the port city of Vladivostok, continues to develop, Russia will be engaging in deeper economic relations with East Asia.

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