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Situation in economic sector-far from ideal - Medvedev

January 11, 2009 | Itar-Tass

The anti-crisis programme of the Russian cabinet is being implemented slower than planned, and it is necessary to perk up work for its realisation, since the situation in the economy is far from ideal, said on Sunday President Dmitry Medvedev at a meeting on stabilising the situation in the economic sector, which is now in progress at Moscow’s Salyut factory.

Medvedev noted that he had given several instructions to the government last October. “We should admit that the implementation of planned measures is being realised slower than we expected, and what’s the main thing – slower than the present circumstances require,” he emphasised.

“Only 30 percent has been executed,” the president specified.

“The situation should be scrutinized, and appropriate efforts should be taken to speed up work,” Medvedev said at the meeting, attended by cabinet members and executives of several major industrial enterprises.

The Russian leader noted that many necessary measures are taken very slowly. “Many things are made inexcusably long,” he stressed. The head of state said that the situation in the economic sector is far from ideal.

“For one thing, volumes of industrial production in October-December shrank, on average, by more than six percent a month as against the corresponding period in 2007,” Medvedev continued. “The reason was not only a drop in domestic demand, but also a very considerable slump in export prices,” he underlined, adding that they dropped by 30-70 percent for metallurgical goods.

“Secondly, difficulty also lies in the fact that most enterprises experience an acute shortage of working capital,” Medvedev added. “Interest rates on credits went up, while demands for their security stiffened,” he noted, specifying that this resulted in declining profitability of production and sometimes in losses of profits by enterprises.

‘Thirdly, all these factors aggravated the operation of the budget system, above all in regions,” the president went on to say. According to the Russian chief executive, the situation is especially hard in the mining industry.

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