Russian Economy May Suffer From WTO Accession, Warns Putin
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Russian President Vladimir Putin has urged domestic industries to adapt quickly to the new market conditions that have arisen from the nation’s entry into the World Trade Organisation (WTO); and warned that the initial adjustment to WTO regulations may cause the overall economy to suffer in the short-term.
Russian President Vladimir Putin has urged domestic industries to adapt quickly to the new market conditions that have arisen from the nation’s entry into the World Trade Organisation (WTO); and warned that the initial adjustment to WTO regulations may cause the overall economy to suffer in the short-term.
Speaking to a National Security Council meeting on Wednesday, Putin noted that the nation’s agriculture and automotive industries were particularly at risk, while other domestically produced goods may become less attractive to consumers, as past duties on foreign goods were gradually being removed.
“We should understand that the initial period in WTO will require a serious adjustment of our economy,” said Putin, as cited by Reuters.
“Because of the negative trends in the global economy, the risks linked to Russia’s WTO obligations have grown,” he added.
[quote]“The current situation on global markets is characterized by low demand and low investment activity and therefore there is a risk that we’ll be unable to get quick positive results from our accession to the WTO,” Putin warned, according to RIA Novosti.[/quote]The Russian President was responding to local critics who had claimed that Russia’s WTO accession would be detrimental to the country’s sovereignty and security. But while Putin acknowledged the critics’ concerns, he emphasised that the WTO entry was necessary to increase competitiveness and protect the nation’s interests globally.
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Putin said that the government would take measures to minimise risks, including policies to lure foreign investments. Putin also instructed his government to elaborate measures on how to prevent unemployment growth in the wake of the nation’s WTO entry.
[quote]“We need to maintain these positive trends and prevent a fall in the employment rate in single-industry towns and in the regions where large enterprises of the sectors in the ’risk group’ are concentrated,” Putin said, citing Russia’s falling unemployment rate over the last few years, from 8.4 percent in 2009 to 5.2 percent at present.[/quote]
