ANOSINO (Moscow region) (Sputnik) — Despite a sharp decline in oil prices in recent years, Russia's balance of payments is in a stable state, Economic Development Minister Maxim Oreshkin said Monday.
"Despite a sharp decline in oil prices in the last three years, the balance of payments in Russia as is in a stable state on the whole, capital is flowing into the Russian market intensively," Oreshkin said at a conference at Sberbank Corporate University.
"The story is as follows: financial markets have long assessed Russia's credit rating much better than what rating agencies write. The Fitch agency on Friday raised its outlook on the Russian rating. They have the Russian rating in the investment category, they did not downgrade it even in the most critical period," Oreshkin stated.
In addition, Russia's economy should find 5 trillion rubles ($87 billion) of additional investment a year to grow faster than average global rates, Economic Development Minister Maxim Oreshkin added.
"According to our estimates, in order for the Russian economy to reach the growth rates above the world average compared to the level of 2016, we need to add about 5 trillion rubles of additional investment each year," Oreshkin said.
According to various forecasts, in the coming months Russia might see a moderate inflow of foreign investments amid the expected growth of prices for Brent oil, which, could increase the attractiveness of Russian stocks and bonds, experts claim.
The Russian economy suffered a setback in 2014, as the ruble lost about half of its value against the US dollar amid low global oil prices and Western economic sanctions imposed against Russia over the situation in eastern Ukraine. Moscow denies materially supporting militia and says Western sanctions are counter-productive.