Andrey Kostin, Chairman of the Board of Directors of VTB Bank, was thinking about ways to create a new model of economic growth in Russia based on its own resources.
He gave three main areas that he thought should be focused on. This includes organizing logistics inside the country, creating an appropriate infrastructure and creating a reliable system for financial settlements, and restarting industries in the Russian Federation. In addition, according to Kostin, the focus should be on import substitution of high technologies and the development of the military-industrial complex. He shared his vision in an article for RBC.
“First, the rapid construction of new logistics corridors and transport infrastructure, mainly rail and ports, in the East and South. The use of major Western currencies for sanctions purposes also dictates the need to create a reliable system of financial settlements and payments in ruble and “friendly” currencies as soon as possible, the development of bilateral digital currency platforms and multilateral. Second, the restarting of entire industries based on the active introduction of innovative solutions and the substitution of high-tech imports. Third, to strengthen the defense capability of our country through the development of the military-industrial complex and the successful integration of new regions,” the head of VTB writes in his article.
At the same time, the head of VTB proposes to release funds for all the above areas in three steps: relaunch privatization, increase public debt and redistribute budget funds.
“Three answers to one question: relaunch privatization; bolder use of financial reserves and public debt for development; redistribution of budget funds in favor of the above three priorities,” suggested Kostin.
As for the privatization program, it is sure that its resumption “will not only successfully attract funds to the budget on market terms, but will give a powerful impetus to the elimination of these” bottlenecks “where the willingness to take risks, to do quick things and unconventional decisions are particularly important today”, what private initiative can bring.
Kostin also doubted that USC, which is 80% state-owned, would be able to meet the challenges of our time, when Russia supplies oil and gas products not only to Europe, as it has been over the past 50 years, but now all over the world. The boss of VTB is convinced that only a private initiative can cope with the increase in industrial shipbuilding capacity.
Earlier, information was provided that Russia’s external debt in 2022 reached a 15-year minimum. Compared to the last year 2021, public debt indicators in 2022 decreased by 21.1%. The Central Bank of Russia reported that its volume decreased by $101.8 billion to $380.5 billion.
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