Sberbank CEO German Gref alerted Friday that a combination of high rates of interest and a miscalculated ruble was producing an ideal storm that could stunt financial investment and weigh down on Russias economic growth in the years ahead.Were facing a large set of problems that can be called a best storm, Gref said during a Sberbank-organized breakfast at the yearly St.
Petersburg International Economic Forum (SPIEF).
He stated genuine rates of interest were cutting into company profits and requiring business to postpone financial investment decisions.Real rate of interest show the difference between the Russian Central Banks key rate of 20% and annual inflation of just under 10%Thats a hazard to financial growth not just this year, but also for the next two to three years, Gref stated, predicting the Central Bank would cut the rate to 15% by the end of 2025.
Russias economy broadened just 1.4% year-on-year in the first quarter of 2025 its slowest speed in 2 years.
The World Bank projections likewise sluggish growth of 1.4% for the full year, following two years of state-driven growth fueled by wartime spending.Economists have cautioned that this growth is unsustainable and masks underlying productivity stagnation.Gref also criticized the rubles current gratitude, stating it was hurting Russias export-driven budget plan.
The ruble has reinforced for 6 successive months, supporting at around 78 to the U.S.
dollar this week.In truth, a more well balanced rate would be 100 or more [rubles per dollar], the Sberbank CEO said.Finance Minister Anton Siluanov, who is also participating in SPIEF 2025 today, acknowledged the dual pressure of high rates and a strong ruble, but ruled out more modifications to the tax system that might weaken predictability.Russia enacted sweeping tax reforms last year, which entered effect at the start of 2025, presenting a progressive income tax and increasing corporate contributions to the federal budget plan.