RUSSIA: Deputy PM gives gloomy economic picture but sees no social unrest

Record ID: 755838

  • Title: RUSSIA: Deputy PM gives gloomy economic picture but sees no social unrest
  • Date: 24th June 2009
  • Summary: MOSCOW, RUSSIA (JUNE 23, 2009) WIDE SHOT RUSSIAN DEPUTY PRIME MINISTER IGOR SHUVALOV AND REPORTER DURING INTERVIEW SOUNDBITE (Russian) RUSSIAN DEPUTY PRIME MINISTER IGOR SHUVALOV SAYING , REPLYING TO REPORTER QUESTION ON HOW MUCH THE RUSSIAN ECONOMY WILL CONTRACT THIS YEAR: " Maybe eight or nine percent - maybe, but that's the worst-case scenario." CUTAWAY SOUNDBITE (Russian) RUSSIAN DEPUTY PRIME MINISTER IGOR SHUVALOV SAYING "We don't expect any widespread social protests because we are reacting when there are pockets where people are discontented, the state is getting involved, the president reacts to this, a government member goes out to visit a factory, say, in order to examine the situation in a particular region." CUTAWAY SOUNDBITE (Russian) RUSSIAN DEPUTY PRIME MINISTER IGOR SHUVALOV SAYING :"This process has already been going on for a lengthy 16 years, and from our side we have not seen from the USA or other partners any real signals which would lead us to take a special decision to achieve entry into WTO, in the knowledge that any problems could be resolved later." WIDE SHOT OF INTERVIEW IN PROGRESS CAMERA OPERATOR SOUNDBITE (Russian) RUSSIAN DEPUTY PRIME MINISTER IGOR SHUVALOV SAYING "It couldn't go on for ever, we needed a result, and we got it in a different format - a customs union (with Belarus and Kazakhstan) " WIDE OF INTERVIEW
  • Embargoed: 9th July 2009 13:00
  • Keywords:
  • Topics: Domestic Politics
  • Reuters ID: LVA9BI4J6B320400867JPVOY5A9Z
  • Story Text: STORY : Russian First Deputy Prime Minister Igor Shuvalov said the Russian economy could contract by eight or nine percent this year, in a worst-case scenario. He was speaking in an interview with Reuters financial television on Tuesday (June 23).
    "Maybe eight or nine percent - maybe, but that's the worst-case scenario," said Shuvalov.
    He dismissed concerns that the economic crisis could provoke any widespread domestic unrest and said companies and local officials were working to prevent tensions rising over unemployment.
    "We don't expect any widespread social protests because we are reacting when there are pockets where people are discontented, the state is getting involved, the president reacts to this, a government member goes out to visit a factory, say, in order to examine the situation in a particular region" he said.
    The United States and European Union are to blame for Russia's decision to drop a unilateral bid to join the World Trade Organisation, Shuvalov suggested.
    Russia, the biggest economy outside the 153-member trade body, is now negotiating entry along with Kazakhstan and Belarus, with which Moscow says it will create a customs union.
    The move, which has left the WTO secretariat in confusion, was announced by Prime Minister Vladimir Putin just days after Russian officials held talks with U.S. and EU trade representatives.
    "This process has already been going on for a lengthy 16 years, and from our side we have not seen from the USA or other partners any real signals which would lead us to take a special decision to achieve entry into WTO, in the knowledge that any problems could be resolved later," Shuvalov said.
    "It couldn't go on for ever, we needed a result, and we got it in a different format - a customs union (with Belarus and Kazakhstan)," said Shuvalov, the minister responsible for overseeing both the WTO accession talks and integration with Russia's ex-Soviet neighbours.
    Russia has been negotiating to join the WTO for 16 years but Russian officials say the United States and European Union have made unreasonable demands for entry.
    Russia is entering the worst recession in at least a decade and unemployment has soared to 7.5 million in the wake of the global financial crisis.
    Russia's leaders say they will do everything to ensure the stability which Putin prided himself on achieving while Kremlin chief between 2000 and 2008 Story
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