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US Ambassador: Russia Is at Last Making Economic Progress
October 24, 2002
Rosbalt

MOSCOW, October. As a Rosbalt correspondent reports, US Ambassador Alexander Vershbow believes that Russia is now making economic progress at last.

Mr Vershbow believes that President Putin 'has achieved some kind of economic balance.' Vershbow is in favour of the current tax reforms, the changes in social benefit and the fact there are now fewer administrative barriers for entrepreneurs. He said that the economic growth has continued throughout 2002 and that the outflow of capital has decreased. Although the crisis of 1998 was a huge blow for the Russian economy, it was also quite beneficial: the rouble acquired 'great strength' and the food industry began to develop according to the ambassador. In his opinion, Russian producers are now able to compete with Western suppliers in terms of the quality of food production.

Vershbow also believes that the new Russian middle class is a 'positive economic signal'. He also said that 'although the middle class is still a small minority there are signs that it will grow.' According to the ambassador 20% of Russians earn between 6 and 40 thousand dollars a year. 'People are spending their money on restaurants, entertainment, mobile phones, cars and trips abroad, which is very different from the Spartan way of life in the times of Brezhnev,' said Mr Vershbow

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