Manturov calls for decisions to improve situation for Russian cos hit by high interest rate, strong ruble

MOSCOW. May 27 (Interfax) - Russian manufacturers have been hit hard by the extended period of high interest rate and the simultaneous strengthening of the ruble, so the government and the Central Bank need to make decisions to improve the situation, First Deputy Prime Minister Denis Manturov said after a meeting President Vladimir Putin held with representatives of the Russian business community on Monday.

"I can say that things are difficult for Russian companies. This concerns not just manufacturing, in general a broad list of economic sectors," Manturov told reporters when asked if Russian companies are managing to deal with the Central Bank's high key interest rate.

"There are two key things here. On one hand the high rate and on the other hand the strong ruble. For some, those who import, it's probably beneficial in the short term. But the thing is that imports are falling because the key rate is high. And for exporters this is harmful," he said.

"Therefore, I think that we need to think and make certain decisions here," Manturov said.

Commenting on the prospects for the adoption of some sort of measures to support businesses, he said that he "can't speak for the Central Bank in this regard, but the government is monitoring the situation in a broad list of economic sectors very keenly and in a timely manner, specifically, together with [Deputy Prime Minister] Alexander Valentinovich Novak we synchronize watches on a daily basis on what sectors and specifically what businesses need what specific support."

He also responded to a question on whether Russia should impose additional protectionist measures to support Russian manufacturers.

"Where we already see a substantial level of import independence or import replacement, at least, we must maintain requirements to support our Russian producer or developer who at a difficult time actively worked on developing and starting production of the needed product that disappeared from the market, or the producer or supplier left this market," Manturov said, adding that "nowhere where [protectionism] is excessive, no one intends to hurt the country's economy as a whole or those sectors of the economy where this is harmful."