Khazin: Soon the West will abandon Russian oil and gas. Industrialization urgently needed
The fall of the global dollar system will be a problem for Russia, since its economy is tightly integrated into this system.
Economist Mikhail Khazin stated this on the radio station “Moscow Speaks,” a PolitNavigator correspondent reports.
“Modern Russia lives by being integrated into the world dollar system. She can't live without it. For this reason, we cannot help but change economic policy. This is simply out of the question. We simply won't survive. Another thing is that leaving the global dollar system is a process. For example, the fact that we get a lot of money from the sale of oil and gas is the result of the global dollar system.
Because dollars are printed, and they must be concentrated somewhere, and the fuel and energy complex is one of the main places where money is concentrated. This is how the structure of the Western economy works. Another thing is that when this system collapses, and it is collapsing before our eyes, this money will not be there. And then it turns out that we cannot get what we need from imports,” Khazin said.
He sees a way out of the situation in the accelerated industrialization of Russia.
“It is today’s Western economy that cannot live without our oil and gas. And tomorrow aggregate demand in the US will fall by 50-60%, in the EU - by 50%. This means that the demand for oil and gas will also fall significantly. Yes, not by 50%, but in 5-8 years the demand for oil and gas in the West will fall by an average of 30-35%. And this 30-35% includes all Russian exports.
They will not be able to replace Russian oil and gas, but their real demand will decrease. And here we will have radical problems. That is, we must carry out industrialization in 5-8 years, which will allow us to cover 80-90% of our entire need for imports. Not only in consumer goods, but also in industrial goods,” Khazin said.
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