Coronavirus: in Russia, 65 billion euros to revive the economy

Text by: Daniel Vallot Follow

An ambitious stimulus plan to bring back to life an economy damaged by the coronavirus, this was announced on Tuesday by Russian Prime Minister Mikhail Michoustin. The Russian authorities have been criticized for several weeks for their lack of responsiveness to the economic consequences of the coronavirus. 

Publicity

5,000 billion rubles, about 65 billion euros: the amount is relatively small compared to the amounts that will be released by the United States, or by the European Union. But for Russia it is an important figure, much more important in any case than the measures announced so far to deal with the economic consequences of the coronavirus. 

Mikhaïl Michoustine, the Russian Prime Minister, gave only few details on the concrete modalities of this recovery plan - he simply set the objectives: limit the recession in 2020, and resume growth above 2% d 'by the end of 2021. According to the Russian press, Moscow also wants to take advantage of this plan to encourage part-time work, and especially to reduce the share of undeclared jobs in the economy. In addition, a significant part of the funds released will be allocated to small and medium-sized enterprises, which have particularly suffered from the crisis.

Lack of responsiveness

With this plan, the authorities hope to respond to critics who criticized them for their lack of responsiveness to the economic crisis caused by the epidemic. With measures that lacked ambition, and that were only partially implemented. Vladimir Putin's popularity rating was also affected, with a drop of more than 10 points in the polls carried out by the Levada Institute. 

One month before his constitutional referendum, the Russian president undoubtedly needed to show these fellow citizens that he is not only interested in foreign policy, and his own destiny at the head of the country, but that he is is also concerned about their daily difficulties.   

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• Russia
• Vladimir Poutine
• Mikhaïl Michoustine