Putin advisor: No 'Back in the USSR' for Russia economy

STORY: Governor Elvira Nabiullina was speaking at Russia's flagship annual economic conference in St. Petersburg.

She said a "substantial part" of Russian industry should start working for the domestic market, rather than rely on exports for revenue.

"It's clear to everyone that things won't be how they used to be. We keep repeating that pretty banal phrase. There's no returning to the old ways, the world has changed", said Nabiullina, adding that external conditions have changed "for a long time, and maybe forever".

Maxim Oreshkin, an economic advisor to Russian President Vladimir Putin, remained optimistic about the economy.

He said he was confident that it would contract by no more than 5% in 2022 and ruled out a return to a Soviet economic model.

Oreshkin's optimism contrasted with official forecasts.

The economy ministry said this week it expected gross domestic product (GDP) to contract by 7.8% in 2022. Previously, it had said the economy was on track to contract by more than 12%, in what would be the biggest GDP drop since the aftermath of the fall of the Soviet Union.

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