The Political and Economic Results in June 2013

Abstract

In June 2013, the ruble was slightly devaluated with a view to increasing ruble budget revenues amid slow-down in economic growth. A. Ulyukayev was appointed a new Minister of Economic Development, replacing A. Belousov, which most probably means an attempt to observe moderation in government spending. President Putin admitted the need to limit growth in monopolized tariffs within inflation rate and carry over a part of military expenditures for better times. A new privatization program approved by the Russian Government was actual announcement to refuse to privatize large property (except for Rostelecom, Vnukovo and Sheremetyevo international airports, ROSNANO, Aeroflot) to the extent that privatization means gaining control over such property by a private owner. However, the previous program failed to be implemented, being just an attempt of political promotion, therefore no serious deterioration in a new reality can be observed. The arrest of Makhachkala mayor S. Amirov in Daghestan was an evidence of that the state is seriously determined to combat civil servants and ethnic tribes who have relations with terrorist underworld.

Keywords: Russian economy

JEL Classification: K0, K1, K4, D73, D74