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Not Moscow should help, but other regions should help Moscow, says economist Mironov

Deputy Director of the Development Center Institute, National Research University Higher School of Economics Valery Mironovin an interview with Pravda.Ru told how the sanctions will affect regional budgets.

Mironov noted that the regions should not expect financial support from Moscow, since the whole picture is changing in connection with anti-Russian sanctions.

He explained that a lot of raw materials companies are registered in Moscow, which pay many taxes in the capital, although oil is actually produced in other regions.

“Sanctions now can affect, among other things, those regions that were previously centers of both logistics, and scientific and technical, and so on. Therefore, it is not clear whether Moscow will have a privileged position, which it used to be, when it could really help the regions “, said the economist.

Mironov explained that the sanctions benefited some regions of the Russian Federation.

“Now, according to polls, despite the sanctions, many manufacturing enterprises say “thank you to the sanctions, our orders for engineering products within the country have increased by 2-3 times,” the expert noted.

He drew attention to the fact that the market was vacated by many Western companies that left the Russian market. However, the demand is still there.

“We still have a small budget deficit due to high oil prices in the economy, and the incomes of the population have not fallen sharply, I hope they will not fall as long as demand persists,” Mironov shared his opinion.

The Deputy Director of the HSE Development Center Institute emphasized that any crisis is associated with sanctions on high-tech products, including those that cannot be produced quickly.

“I wouldn’t say that Moscow should help anyone. Rather, maybe soon other regions will help Moscow and should develop production, focusing on new opportunities and struggling with new difficulties at the same time associated with sanctions, with those restrictions of a different type that have been introduced against Russia,” Mironov explained.

It was previously reported that Japan expanded sanctions against Russia because of the holding of referendums.

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