"Today, it is clear that the crisis is spreading, unfortunately from the financial sector into the sectors of the real economy," Medvedev said, acknowledging for the first time that the crisis previously described as global is spreading into the heart of the Russian economy.
"Every industry is affected in its own way. It is impossible to say that one among them is sitting pretty and will not get state money," he said.
Russia is pushing ahead with a $200 billion state aid package, and the Central Bank has spent tens of billions of dollars propping up the local currency in recent weeks as investors pulled money out of the country and its stock markets.
The country will need to spend more of its wealth, amassed when global demand for its commodity exports was booming, to help the economy, Medvedev said in Izhevsk, the capital of the central Russian republic of Udmurtia.
"About 5 trillion rubles ($182.3 billion) will be spent on stabilization measures. But this is not the final number. We understand that the scale of the problem is such that additional decisions will be needed," he said.
The president also gave assurances that despite the global economic crisis, the country will meet all the commitments it made to other G20 countries and not resort to protectionist measures.
The country's commitment to free trade has been questioned after it announced that it will raise import duties on secondhand cars and intends to review trade agreements with several countries, including the United States.
"I expect the Russian government to take every step needed to carry out these obligations," he said.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.