Remember pre-rollover when we said if Russia didn't survive the y2k bug that noone would notice because Russia didn't have an economy?

http://www.boston.com/dailynews/106/world/Putin_Inflation_is_greatest_th:.shtml

Putin: Inflation is greatest threat to Russia's economic growth

By Jim Heintz, Associated Press, 4/16/2001 14:55

MOSCOW (AP) President Vladimir Putin said Monday that inflation surged in the first quarter of the year, calling the rise in prices the greatest threat to Russia's economic growth.

Over the past year, Russia's economy has shown signs of regaining its footing following the financial collapse of 1998, driven by high world prices for oil Russia's prime export and by the plunge in the ruble's value making Russian products cheaper for importers.

But oil prices recently fell from their February levels and economists have warned that the strengthening ruble could drag down exports.

Putin said Monday at a meeting of top Finance Ministry officials that inflation is ''eating up revenues'' and poses ''the fundamental threat to economic growth.''

Russia's monthly inflation was 7 percent in January-March, up from 3.9 percent in the same period of 2000, Prime Minister Mikhail Kasyanov said, according to the Interfax news agency.

Other figures cited by Kasyanov reflected improvement, including gross domestic product growth of more than 4 percent and a 5-percent increase in people's real incomes, Interfax reported.

However, Russia's industrial growth fell to 3.3 percent in the first three months of 2001, down from 11.9 percent in the same period in 2000, the State Statistics Committee said, according to Interfax.

Some analysts recently have pointed to the year 2003 as a potential time of economic crisis for Russia, pointing to an expected continued fall in oil prices and to foreign debt payments of more than $17 billion that year.

Even in its improving economy, Russia has struggled to keep up with foreign debt payments and unsuccessfully sought restructuring for the $2.4 billion owed this year to the creditor nations known collectively as the Paris Club.

Putin said that the draft budget for 2002 should place priority on social welfare, state security, education and preserving Russia's scientific potential. He also called for funds to be earmarked for judicial reform and reform of the government apparatus.

The draft budget should not become ''hostage to foreign energy carriers' prices'' and it needs to be protected as much as possible from external economic factors, Putin said.

-- Anonymous, April 17, 2001