Kudrin saw the danger in the deal between Russia and OPEC

Кудрин увидел опасность в сделке России и ОПЕК

The deal on the reduction of oil production within OPEC+ will cause Russia to slow economic growth, says the Chairman of the accounts chamber Alexey Kudrin. About it reports “Interfax”.

The agreement was reached on 7 December. Under it members of OPEC agreed to reduce oil production in total by 800 thousand barrels per day, and the partners of the cartel, including Russia, 400 thousand (200 thousand of them in Russia).

Kudrin stressed that he had always opposed such “temporary solutions to stabilize prices” because they decrease the motivation to improve performance in the areas of production, processing and sale of hydrocarbons.

The head of SP also called the main risks for the Russian economy.

“If we talk about the challenges of a more short-term is, of course, the price of oil, the sanctions, the decline in the working age population – we still have the problem of a lack of manpower for economic growth,” Kudrin said.

According to him, the lack of human resources will have a negative impact on economic growth the next 6 years. To compensate for its official urged with increasing productivity.

Also to the risks he took, the limitation of access to technology and the world’s financial resources (their Kudrin said “more situational”), and the absence of structural reform, primarily the reform of public administration. In addition, the Chairman of the accounts chamber is confident that a serious risk to the economy are low growth in real incomes (about 1% in 2019).

Kudrin also proposed to complement the development indicators of the country’s happiness index. According to him, the GDP loses its objectivity, and the main indicators of development are poverty, life expectancy, inequality and freedom of choice.

“As an economist I believe that we have a happiness level to discuss, to measure,” said the Chairman of the joint venture.

The index of happiness is considered to be one of the alternatives to GDP. It takes into account GDP per capita, the scale of social support in the country, life expectancy, the ability to make important decisions, the generosity and credibility of the business and the authorities. In the UN rating on the happiness index Russia occupies 59-e a place out of 156.