Russia has got reserves for economic breakthrough - expert

MOSCOW, June 10 (RIA Novosti) - Engineering, transport, communications and space are economic branches in which Russia can achieve a breakthrough, presidential expert board chief Arkady Dvorkovich said on Friday.

Dvorkovich also forecasts success for the automobile industry and household appliances, saying that their assemblage is to be gradually adjusted in Russia.

He said that tangible progress in the non-raw materials sector can be made within 2-3 years. The past 15 years were a trial period for many industries: some were recovering after the collapse of the Soviet Union, others were taught to control financial flows but now many are reflecting over investment.

In his opinion, foreign investment should be exploited actively as Russia is yet too weak to sustain such a financial burden.

"Therefore Russia should not give up prospecting energy resources and forget about the oil sphere. The sphere provides major injections into the budget and our fuels are in great demand abroad," the expert said.

He said that Russia could stop being 'an oil addict' if it started developing other industries.

As to the money that Russia gained due to the price-rise in the oil sphere, it should be all spent on welfare and education, Dvorkovich said.

"No one will instantly spend unexpected money and the oil money was really unexpected. The government is right spending it gradually, only on the most urgent and reliable projects," the expert said.

The government should anticipate all the expenses in the budget otherwise inflation is inevitable, according to Dvorkovich. He was compelled to admit that the inflation rate was now outstripping the ruble consolidation but the Central Bank succeeded for the time being in balancing between these two factors.

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