Putin claims Russia has weathered sanctions higher than Europe


Vladimir Putin claimed on Friday that his nation had weathered the worst of the sanctions imposed by the US and Europe, as Russia’s president vowed to attain the objectives of its navy aggression on Ukraine.

Putin instructed a enterprise convention in St Petersburg that “gloomy predictions about the Russian economy’s future didn’t come true” and that the sanctions had hit European companies more durable — a declare that isn’t supported by estimates revealed thus far.

“The economic blitzkrieg . . . never had any chances of success,” he stated. “The weaponry of sanctions is a double-edged sword . . . European countries dealt a serious blow to their own economy all on their own.”

Since Russia’s invasion of Ukraine in late February, western nations have imposed sanctions which have frozen $300bn of Russia’s international forex reserves, reduce its corporations off from international markets, and disrupted its provide chains.

Putin was adamant that Russia would obtain its navy objectives, indicating it might annex occupied territories or Moscow-backed separatist areas within the japanese Donbas area. “We will defend the interests of the people for whose sake our guys are fighting, getting wounded, and dying,” Putin stated. “There’s no other way. Otherwise what are the victims for?”

Moscow-backed separatist authorities within the Donbas, whose leaders attended the convention, and officers the Kremlin has appointed to run southern areas of Ukraine have stated they need to grow to be a part of Russia. Putin stated Russia would “respect any choice they make”. He harassed that he noticed the complete former Soviet Union as “historical Russia.”

Though he claimed the US had provoked the warfare by turning Ukraine into an “anti-Russian bulwark,” Putin stated Moscow had no objection to Kyiv’s makes an attempt to hitch the EU as a result of it was not a navy alliance. The European Commission on Friday referred to as for Ukraine to be made an official candidate to hitch the bloc.

Putin’s feedback that Russia has confronted a smaller hit than European economies contradict forecasts from worldwide organisations.

Eurostat, the fee’s statistics bureau, won’t publish development figures for the second quarter, which can cowl the majority of the interval after Russia invaded, till the tip of July.

But the surge in oil and fuel costs have severely reduce estimates. The OECD just lately slashed its forecast for the eurozone’s enlargement this 12 months from the 4.3 per cent it had estimated in December to 2.6 per cent, and from 2.5 per cent to 1.6 per cent for 2023.

For Russia, the downgrades have been a lot steeper. Its financial system is predicted to contract 10 per cent this 12 months, in accordance with the OECD, a downgrade from the 1.9 per cent of development anticipated in December. The projection for 2023 was reduce from 1.6 per cent development to a 4.1 per cent contraction.

Putin stated that Russia had taken inflation beneath management at 17.6 per cent and boasted that it was beneath ranges in some European nations. This is simply true for Estonia and Lithuania, the place power costs have soared after the Baltics moved to chop off provides of Russian power as soon as the warfare started. The eurozone common is, at 8.1 per cent, lower than half the Russian price.

Western central banks have blamed the battle for exacerbating inflationary pressures by triggering sharp rises in the price of power and meals. Putin rejected the declare, saying the west was utilizing the battle as a “lifebuoy to blame Russia for their own mistakes”. Western nations have been paying the worth for years of ultra-loose financial coverage and excessive authorities debt ranges, he stated.

He accused the EU, traditionally Russia’s largest buying and selling companion, of bending to US stress. “The EU has lost its political sovereignty. Its elites are dancing to someone else’s tune, harming their own population. Europeans’ and European businesses’ real interests are totally ignored and swept aside,” Putin stated.

While Putin performed down the financial harm wrought by the sanctions, Russian financial officers in attendance have been visibly rattled. Herman Gref, chief govt of state-run lender Sberbank and a longtime confidant of Putin’s, stated the export-driven financial mannequin was now “poison” as a result of it made the rouble too sturdy in opposition to the greenback.

Putin additionally rejected western accusations that Russia has exacerbated the worldwide meals scarcity by blockading Ukraine’s Black Sea ports and stopping its grain exports.

Instead, he stated the sanctions had restricted Russia’s personal grain exports. “Famine in the poorest countries will be on the conscience of the US administration and the Eurocrats,” Putin stated.

The sanctions, which have wiped tens of millions of {dollars} off the wealth of wealthy Russians, had vindicated his warnings that Russian oligarchs and executives have been taking too many dangers by snapping up property within the west. “Real success is possible only when you tie your future and your children’s future to the motherland,” he stated.

Source: www.ft.com