Putin: 50 percent plunge in oil prices affects Russian economy yet it possesses reserves

The plunge in oil prices has caused certain problems for the Russian economy yet substantial reserves help it cope with the effects produced by negative factors, Russian President Vladimir Putin has said.

The plunge in oil prices has caused certain problems for the Russian economy yet substantial reserves help it cope with the effects produced by negative factors, Russian President Vladimir Putin has said.

"Russia is an active participant in the global economic relations. And, of course, Russian economy is affected by sharp fluctuations in the global economic situation, especially such as a 50 percent plunge in oil prices. For Russia, as one of the world's largest oil-producing countries, it means certain problems related to budget revenues, state spending on economic growth and implementation of oil companies' investment programs," Putin said in an interview with the Egyptian daily Al-Ahram ahead of his visit to Cairo.

"At the same time, I would like to underline that it is not the first time we have faced such problems. We have the experience of overcoming the previous crisis of 2008-2009," he said.

"Just like then, Russia has accumulated substantial reserves which enable us to cope with the effects produced by negative factors," Putin emphasized.

"The Government has adopted a large-scale plan of actions to ensure sustainable economic development and social stability. It includes support for the real sector of economy and systemically important credit institutions, employment promotion and assistance to small and medium-sized businesses. We will optimize budget expenditures and monetary policy," he said.

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