Bloomberg: Russian Elites Talk About The Problems Of The Economy

Putin's entourage sounded an alarm bell for the Kremlin.

Some members of Russia's political and business elite showed rare public signs of concern this week amid continued positive coverage of the country's future course at President Vladimir Putin's main economic forum. They wrote Bloomberg.

In discussions at the St. Petersburg International Economic Forum, they criticized increased government intervention and pressure on business in Russia's war economy, as well as the return of some Soviet-era practices. Several loyalists warned that Russia risks undermining innovation, entrepreneurship and economic growth, even as they avoided directly criticizing Putin.

"We all talk about technological leadership, but technological leadership is based on freedom, not total state control. Negative policies are literally killing us," said Igor Shuvalov, a former first deputy prime minister who now heads the state development corporation VEB.RF.

He pointed to proposals by presidential aide Vladimir Medinsky to restore the Soviet system of sending university graduates to mandatory jobs chosen by the state. In particular, Shuvalov, 59, expressed concern that officials and lawmakers are discussing the possible resumption of a childlessness tax, a policy that existed during the reign of Joseph Stalin.

"What have we been building for the last 30 years? There is a certain shift that is a challenge," he said.

At the same time, a senior deputy from the ruling United Russia party, Andrey Makarov, who heads the State Duma's budget committee and is known for his often heated arguments with high-ranking officials, spoke out about the pressure to which businesses are subjected by regulators and law enforcement agencies.

"Law enforcement lawlessness is not the best background," Makarov said during one of the panel discussions, while emphasizing that he understands: in wartime, special services can play a big role.

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