Russia could face protracted economic crisis: Putin

Prime minister Vladimir Putin warned on Friday that Russia could face protracted economic crisis even as he expressed confidence in his government’s capability to cope with the sharp economic downturn.

"This situation could continue for quite a long time. The scale (of meltdown) is too large," Putin told the leaders of ruling United Russia party, which is headed by him.

However, the Russian leader expressed confidence in his government’s capability to cope with the crisis, which has taken a high toll on the former Communist nation’s oil windfall reserves and national unit ruble.

"The situation is not simple, and this will be a tough year, but no catastrophe will occur. We have the ability to keep the situation under control, and we will do so," Putin stated.

The current financial crisis has already seen Russia's economy shrink by 8.8 percent in January from a year earlier. The ruble has lost one-third of its value since September and unemployment rates are soaring.

"When there are resources and money in plenty, it is a nice job to distribute the funds. But working during a crisis is a more serious job,” Putin said.

The Russian cabinet headed by Putin has come under scathing criticism from his protege – president Dmitry Medvedev, for the slow pace of implementation of anti-crisis measures.

In a parallel development, president Medvedev’s economic aide Arkady Dvorkovich declared that the Russian government machinery was not geared to cope with a protracted crisis faced by the country.

“Among the authorities, preparedness for a long-term crisis is similar to that among the general public - except it is even lower,” he said at an economic forum in Siberian city of Krasnoyarsk.