However, the instability that comes from the Russian economy’s high dependence on oil remains a concern, particularly as volatility in the commodity’s price continues to roil markets. Nonetheless, Dmitriev claims that attempts to ween the economy off its dependence are ongoing and bearing fruit, even if slowly.
“We believe step-by-step diversification is happening … We see major growth in non-oil sectors of Russia but of course more growth there is needed,” he admitted, also acknowledging that while companies have made solid progress towards improving their competitiveness in recent years, still much needs to be done in terms of broader supply-side reforms.
“Hopefully some of the steps will be taken this year and there is a realization that lots of reform need to be taken this year,” the executive offered.
Expressing his enthusiasm for the recently extended oil output cut agreement between OPEC and non-OPEC producers, he emphasized that it was an historical deal given it is the first time that Russia and Saudi Arabia have worked so effectively together on the international stage, and that its success is critically important for his country.
“What it means for Russian economy is stable growth … And lots of predictability for investment in Russia because a good solid oil price means that the Russian economy and lots of sectors of the Russian economy are doing well,” he concluded.