In a meeting today with leading members of his economics team, Russian President Vladimir Putin reviewed the “challenging” situation in which his ministers and advisers must operate to create a stable economic environment, “given the complicated global situation and the pressures applied by Western countries through sanctions.” Among those attending were Prime Minister Mikhail Mishustin, Minister of Economic Development Maxim Reshetnikov, Minister of Industry and Trade Denis Maturov, Finance Minister Anton Siluanov, and Central Bank Governor Elvira Nabiulina.
Speaking of the global crisis, Putin said it “is largely caused by these sanctions. Those who conceived them proceeded from short-sighted, exaggerated political ambitions and Russophobia, at the expense of their own national interests, their own economies and the wellbeing of their people, as primarily demonstrated by the rising inflation in Europe.” In some countries, he noted, the annual inflation rate is close to 20% and Eurozone prices have increased by an average of 11%.
The Russian leader warned that this “sanctions frenzy” will cause the people of the EU to suffer consequences “that will be hard to reverse. The same applies to the world’s poorest countries, which are already at the risk of hunger.” And, he emphasized, the responsibility for this lies with the Western elites “who are ready to sacrifice the rest of the world for the sake of preserving their global dominance.” In contrast, he explained, Russia has dealt with external challenges in a responsible and confident manner, finding solutions in order “to strengthen its economic sovereignty, technological and food security.” After “unscrupulous partners” left the country, domestic companies stepped in and were able to fill in those market niches and provide staple goods, industrial and service sector equipment, and construction and farm machinery, for example.
Putin outlined several other steps taken to deal with inflation and ensure the availability of an adequate budget; he noted the record 2.7-trillion-ruble budget surplus and the financial decisions made that allowed development projects to proceed. The ruble has gotten stronger, and the foreign trade surplus is breaking records, he said. Areas of concern include lower domestic demand and the shrinking of corporate and private accounts, which also affect economic development trends. He also pointed to steps taken to support Russian businesses and regions, assisting families with children through financial aid, restructuring debt of regions, and making loans available. Specific supports were developed for key industries–aviation, agriculture, and food production. Special measures were also implemented to saturate the economy with liquidity, key for maintaining jobs as well, and facilitating mortgage programs to allow families to purchase homes, which will also bolster the construction industry.
