Russia must not let economy slip into recession, says Putin
ST PETERSBURG, Russia, June 20 (Reuters) - Russia's economy must under no circumstances slide into recession, President Vladimir Putin told an economic forum on Friday, in a clear instruction to assembled government ministers and central bankers.
The Bank of Russia hiked its key interest rate to the highest level since the early 2000s in October, but cut by one percentage point to 20% earlier this month.
The Kremlin has said this easing did not go far enough, as the economy threatens to cool too quickly after running hot for two years thanks largely to huge increases in defence spending.
"Our most important task is to ensure the economy's transition to a balanced growth trajectory," Putin said in a keynote speech at the St Petersburg International Economic Forum.
"Balanced growth is moderate inflation, low unemployment, and continued positive economic dynamics... At the same time, some specialists and experts point to the risks of stagnation and even recession. This should not be allowed under any circumstances."
Economy Minister Maxim Reshetnikov, in a downbeat message to Russia's showcase economic event, said on Thursday that the economy was on the verge of sliding into recession and monetary policy decisions would determine whether it falls into one or not.
At this week's forum, government ministers and business leaders have stepped up pressure on central bank governor Elvira Nabiullina to deliver deeper rate cuts.
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an hour ago
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Putin says he is worried when asked if he is concerned world is heading towards World War Three
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There is only one warmonger on the European stage: Vladimir Putin
On 13 June, the Guardian published a collective letter concerning Russia's war and attacking Dr Fiona Hill, the chancellor of Durham University and one of the principal authors of the UK's strategic defence review. As UK-based and/or British-educated experts in matters pertaining to Russia, Ukraine and international security, we voice our profound disagreement with the letter by Robert Skidelsky, Richard Balfe, Anthony Brenton, Thomas Fazi, Anatol Lieven, Ian Proud, Geoffrey Roberts, Richard Sakwa and Brigitte Granville. They say that Dr Hill represents 'the warmongering mood of official Britain'. But there is only one warmonger on the European stage, and that is Vladimir Putin. It is neither a 'false premise' nor a 'mad conclusion' to argue that Putin's invasion of Ukraine has the goal of restoring Russia to the status of a world power, and that the departure of the US would leave Russia 'the dominant military power in all of Europe'. In reality, governments and independent experts from across Europe, ourselves included, have reached conclusions very similar to Dr Hill's, as they are supported by empirical evidence – not least by Putin's own overtly stated aspirations. One wonders what 'precautions' the signatories would advise Britain to take in the event of a US pullout from Europe. The once – and perhaps still – friendly contacts in Russian officialdom that some of the letter's authors maintain will not help. 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