Russia

Russia wasted profit from expensive oil, says Russian politician

добыча_россияWhen asked how financial situation of Russian citizens change next year, Russian politician Valerii Fedotov said: “Unfortunately, next year rich people will become even richer and poor people will become poorer. Our economy is still fully dependent on oil prices. The period of low oil prices could last even decades. This will directly affect wallet of every Russian citizen.”

“We have wasted profit from expensive oil. We should have used those billions to build modern high technology economy to secure the future, which is becoming present now. We have simply wasted that profit in the bars from New York to Phuket. During the past years outflow of capital from the country was between $50 and $150 billion a year. The world biggest corporation Apple cost between $400 and $700 billion and Google – about $250 that time. We should have built something similar in Russia. But in order to do that we need transparent rules of the gams, guarantees of property, independent judicial system and political freedoms. We do not have all that and Skolkovo still looks nothing like the Silicon Valley,” AiF quoted Fedotov.