A longtime ally of Russian President Vladimir Putin has predicted that the majority of Russian companies could go bankrupt due to the increasingly high interest rate.Sergey Chemezov, CEO of the state-owned Rostec, which produces much of Russia's arms and military equipment, issued the warning while addressing the Federation Council earlier this week, according to Russian outlet Business Gazeta.
He warned that this situation could lead to 'stagflation,' referring to economic conditions of slow growth, high unemployment, and rising prices.Chemezov's concerns echo those made recently by other Russian businessmen, who warn that the high borrowing costs could hamper economic growth.Russian billionaire Alexey Mordashov, the largest shareholder of steelmaker Severstal, said earlier this month that the situation was precarious.