А. Ulyukaev will not Take Unjustified Steps Which May Aggravate the Economic Situation

Alexei Ulyukaev who held the office of the First Deputy Chairman of the Central Bank of Russia till June 24, 2013 was appointed the Minister of Economic Development of the Russian Federation.

The above appointment is an important step which demonstrates adherence of the economic policy to liberal ideas and continuation of the course which was defined in Strategy 2020 and carried out by the government under Vladimir Putin.

А.V. Ulyukaev proved himself not only as a high-class expert in monetary policy issues, but also as an economic expert: he has amassed vast work experience at the Central Bank and the Ministry of Finance; also when А.V. Ulyukaev was a deputy of Mosgorduma he was in charge of economic issues. In addition to the above, Alexei Ulyukaev used to work at the Gaidar Institute and was a leading expert on a large number of economic issues.


With Alexei Ulyukaev's appointment, the Ministry of Economic Development of the Russian Federation will be able to switch over fr om rather narrow sectorial issues to a broader view from the above of the economy as a whole. Also, one can expect that a policy aimed at creation of economic conditions for doing business in Russia will be pursued as opposed to that wh ere the emphasis is made on individual projects which may be necessary to the Russian economy at the moment, but do not change for the better general business conditions.


In addition to the above, the equilibrium between the policy of the Central Bank of the Russian Federation aimed at reduction of the inflation rate and the policy aimed at stimulation of economic growth can be expected. With his vast experience, Alexei Ulyukaev is able to play the key role. On the one side, in solving the priority objective of stimulation of economic growth the Ministry of Economic Development under his watch will stick to the policy aimed at achievement of higher efficiency of expenditures, transparency and justification of investment projects. On the other side, as the Minister of Economic Development Alexei Ulyukaev will be able to exert influence on prices and tariffs of state monopolies which situation eventually results in a decrease in the inflation rate.


Unlike the model which could have been formed under the previous minister, one should not expect the Ministry of Economic Development to stick to the policy of excessive spending of budget funds. In addition to the above, Alexei Ulyukaev will not take unjustified steps which may either aggravate the economic situation or result in inefficient spending of government funds in conditions of a recession. It means that Alexei Ulyukaev will avoid large-scale investment projects which may be too expensive for the budget.


S.М. Drobyshevskaya, Doctor of Economy, Director of the Center for Macroeconomics and Finance