OREANDA-NEWS The persistence of inefficient industries in Russia leads to higher costs and a shortage of workers. Andrey Kostin, the head of VTB, called for the closure of such enterprises, as quoted by TASS.

Speaking at the Financial Congress of the Bank of Russia, the banker stated the need to think about the restructuring of the economy.

"We have problems. For example, the coal industry. Let's be honest, too, but why do we need to produce so much coal? Yes, these are social costs, but we need to deal with them. If we don't start rebuilding the economy, shutting down inefficient industries, we will have a shortage of labor, we will have rising costs, and so on," he explained.

Earlier, the top manager warned that the tight monetary policy of the Bank of Russia would inevitably slow down economic growth. Kostin clarified that it is currently too early to talk about an economic recession, although the Russian economy is unlikely to be able to achieve three or four percent growth. If the key rate remains high for a long time, then the country may expect a more severe drawdown rather than a mild one. Kostin urged not to forget that the high "key" is good at short distances.