Rising oil prices will not save Russia's economy

Rules igry23-06-2009 rise in oil prices will not save Russia's economy alone will rise in oil prices without recovery in previous volumes of lending are not able to spur economic growth in Russia, economists say America's leading investment bank Goldman Sachs. "The sharp decline in production in Russia due to a greater degree of sudden reversal of capital inflows in the third quarter of 2008 than the decline of commodity prices", - said in a report published on the eve of the bank. Decrease in industrial production and construction, according to analysts Goldman Sachs, has also contributed to the high cost of credit. In turn, the lack of consumer loans has led to reduced consumer demand "sudden stop of capital inflows was due to just drop in oil prices, said Bigness.ru chief economist at Trust Bank Yevgeny Nadorshin. But he agrees that the recovery of loans actually may not occur even with rise in price of raw materials. According to the economist, this may require a radical change as conditions in Russia, and the thinking involved in economic activity. Self-financing the Russian economy was largely tied to the high price of oil, from which depended on the credit quality of Russian borrowers, like our interlocutor. It is because of high oil prices, Russia is in a lot of cheap money flowing.