President Vladimir Putin has set ambitious growth targets for Russia but the country must not sacrifice macro-economic stability to get there, the central bank governor told CNBC.
"Our president has set us the objective whereby the Russian economy grows at rates above world levels, this means almost 4 percent," Elvira Nabiullina told CNBC's Geoff Cutmore.
"Of course this requires a rise in the potential growth rates. It requires structural reforms, in terms of labor productivity, private investment and then the economy can grow at higher rates than it is now," the governor said.
The central bank governor — who said that for 2018, 2019 and 2020 thereafter growth is expected to be in the 1.5 – 2 percent range — believes that Russia's economy has recovered.
"The Russian economy has pretty much emerged from recession and has recovered, reaching growth rates close to potential," she said, going on to state Putin's challenge to the central bank to promote higher growth.
But she cautioned that higher growth rates should be pursued alongside structural reforms in Russia, and that growth in itself should not be pursued at the expense of stability.
"But I would like to stress that it is very important, including from the standpoint of the central bank, that structural reforms of this kind should go together with macroeconomic stability," she said.
"In other words, a rise in economic growth rates should not be to the detriment or at the expense of … macro-stability, low inflation, a well-balanced budget deficit," she said.