A key Putin aide issues a dour economic prediction for Russia.

According to Alexey Kudrin, the nation faces a greater challenge than the financial crisis of 2009.



Alexey Kudrin, the chairman of the Audit Chamber and a former finance minister, warned on Wednesday that Russia is in for a "very challenging" couple of years, according to RIA Novosti.


"This catastrophe is more serious than the financial crisis of 2009 or the pandemic-related crises... About the current economic burden on Russia brought on by Western sanctions, Kudrin remarked during a meeting of the Council of Legislators in St. Petersburg that "we will be living in a harsh position for roughly two years."


According to Kudrin, who cited the Economic Development Ministry's assessment, the Russian economy is projected to drop by 8.8% this year, with more conservative estimates predicting a probable decline of 12.4%.


According to him, Russia's core inflation rate will be 20.7% this year and higher than 6% in 2023.


The former finance minister claims that all of Russia's anticipated 6.3 trillion rubles ($85 billion) in oil and gas income from 2022 will be spent and that the budget will require an additional 4 trillion rubles ($54 billion) this year to stabilize the economy.


After the economy grew by 4.7% in 2021, the previous Russian government predictions anticipated GDP growth of 3% this year. The World Bank forecast earlier this month that sanctions would cause the Russian GDP output to decrease by 11.2% in 2022.


Priorities to revive the economy of the country were announced by President Putin earlier in April, along with actions to boost enterprises and social programs. Additionally, he said that despite the sanctions, the Russian economy has not been destroyed, as the ruble's exchange rate has recovered to that of the first half of February, and commodities stocks and consumer markets have also begun to rebound.


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