Russia unveils $72bn virus recovery plan
MOSCOW: Russia unveiled a $72 billion recovery plan for its economy badly hammered by the coronavirus pandemic, vowing to boost employment and incomes in the country where cases continue to mount. The economy is set for a sharp contraction this year, and President Vladimir Putin is eager to get growth back on track in a bid to boost approval ratings.
Prime Minister Mikhail Mishustin unveiled a raft of measures Tuesday worth $72 billion aimed at reviving the sputtering economy after weeks of lockdowns that have kept much of the population home from work and shut key industries. Aimed at boosting employment, incomes and economic growth, the program “contains over 500 measures, its cost over two years will be about five trillion rubles,” Mishustin told Putin in a televised meeting.
Putin described the plan as a “foundation” for repairing the economy and implementing “long-term structural change”. “It is a matter of crucial importance for us to solve today’s acute problems, as well as ensure confident movement forward in the long-term,” he said. Putin said the epidemic had “seriously impacted all spheres of life” and added that he expected to launch the recovery plan next month.
The prime minister said the plan would be rolled out over three separate stages. Stage one would stabilize the economy and will be delivered in the current quarter. The next steps aimed to rebuild the economy and put it on a “trajectory for stable economic growth,” the prime minister added.
Russia has introduced targeted tax cuts and provided some emergency aid for families and people newly unemployed since introducing the lockdown at the end of March. Yet observers have said that Russia’s rescue package falls short of aid provided to populations by other countries with similar economies.