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Russia short of long-term capital despite windfall oil revenues

RIA Novosti

Russia, which has accrued large international reserves from windfall oil revenues, is short of long-term capital to stimulate economic growth, experts said at the St. Petersburg International Economic Forum last week.

“Russia really has a shortfall in long-term domestic capital that will support issues along with foreign capital,” Renaissance Insurance Group head Boris Jordan said at a roundtable discussion at the forum.

Russia has long been seeking to diversify its economy away from a dependence on on oil and gas exports, the largest source of budget revenue.

“It is quite easy to raise capital from everything connected to raw materials, oil, gas production and local monopolies,” President of the United Shipbuilding Corporation Roman Trotsenko said. “It is very difficult for companies working on the open market, in a completely competitive environment, to raise capital.”