Russia's economy resilient, not collapsing from Ukraine war: Putin
ST PETERSBURG, Russia: Russian President Vladimir Putin on Friday dismissed claims the war in Ukraine is devastating the Russian economy, citing continued growth, low debt and economic diversification as signs of resilience, while business leaders voiced concern about the economy's health.
Speaking at the closing session of the Saint Petersburg Economic Forum, Putin responded to a moderator's statement that credible reports suggest the war is "killing" the Russian economy. "As a well-known writer once said: 'The reports of my death are greatly exaggerated,'" Putin said, quoting Mark Twain.
Putin said 43pct of Russia's GDP is now unrelated to the energy or defence sectors, underscoring efforts to diversify the economy.
The three-day forum featured intense debate over the risks of economic stagnation. Inflation remains high at 9.59pct annually, more than double the central bank's 4pct target, but it has been gradually easing since late April, according to the economy ministry.
In October, the Bank of Russia raised its key interest rate to its highest level since the early 2000s to combat inflation. Earlier this month, it cut the rate by one percentage point to 20pct .
But the Kremlin has criticised the move as insufficient, warning that the economy could cool too rapidly after two years of war-driven growth.
"Our most important task is to ensure the economy's transition to a balanced growth trajectory," Putin said in a keynote address. He defined balanced growth as moderate inflation, low unemployment and sustained economic momentum.
"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," Putin said.
Striking a more pessimistic tone, Economy Minister Maxim Reshetnikov warned on Thursday that Russia is teetering on the edge of a recession. He said future monetary policy decisions will determine whether the country avoids a downturn.
Central Bank Governor Elvira Nabiullina, who has led the institution through multiple crises since 2013, has faced criticism over high interest rates and currency volatility. She remains in her post with Putin's personal support.
Deputy Prime Minister Alexander Novak said: "It's time to cut the rate and start heating up the economy.
Demand for credit is weak, said German Gref, CEO of Russia's largest lender, Sberbank, and called for faster rate cuts.
"It is especially worrying that we, as the largest bank, which finances ... almost 60pct of all investment projects in the country, have not financed a single new project since the new year," Gref said on Friday.
Alexey Mordashov, majority shareholder of steelmaker Severstal, warned of a looming credit crisis and rising bankruptcies. He noted that steel consumption fell 14pct in the first five months of 2025 compared to the same period last year.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
25 minutes ago
- The Sun
Putin: No proof Iran seeks nukes, Russia backs peaceful program
MOSCOW: Russia has repeatedly told Israel that there is no evidence Iran is aiming to get nuclear weapons, Sky News Arabia on Saturday quoted Russian President Vladimir Putin as saying in an interview. 'Russia, as well as the IAEA (International Atomic Energy Agency), has never had any evidence that Iran is preparing to obtain nuclear weapons, as we have repeatedly put the Israeli leadership on notice,' Sky News Arabia quoted Putin as saying. Russia is ready to support Iran in developing a peaceful nuclear programme, Putin was quoted as saying, adding that Iran has the right to do so. Speaking at an economic forum in St. Petersburg on Friday, Putin said Russia was sharing its ideas on how to stop the bloodshed in the Iran-Israel conflict with both sides. He did not give details of those ideas.
Barnama
an hour ago
- Barnama
Moscow Backs Iran's Peaceful Nuclear Program, Opposes Weaponisation: President Putin
ISTANBUL, June 21 (Bernama-Anadolu) -- Russian President Vladimir Putin has reaffirmed Moscow's opposition to the spread of weapons of mass destruction, including any potential acquisition by Iran, in an interview published Saturday, Anadolu Ajansi (AA) reported. Putin told Sky News Arabia that Russia supports Iran's right to develop nuclear energy for peaceful purposes, emphasising that the International Atomic Energy Agency (IAEA) has found no evidence suggesting Tehran seeks to build nuclear weapons. 'The fatwa in Iran banning nuclear weapons is of great importance,' he added, underscoring the religious ruling as a key element in Iran's stance.
Barnama
2 hours ago
- Barnama
Anadolu Reelected Vice President Of Oana
ST. PETERSBURG, June 21 (Bernama-Anadolu) -- Turkiye's state-run news agency Anadolu was reelected vice president of the Organisation of Asia-Pacific News Agencies (OANA) on Friday, Anadolu Ajansi (AA) reported. The 19th General Assembly of OANA was held at the Expoforum in St. Petersburg as part of the St. Petersburg International Economic Forum (SPIEF), hosted by the Russian Tass news agency. Anadolu was represented by its President and CEO, Serdar Karagoz and Strategic Communication and Brand Management Director, Hazal Duran. bootstrap slideshow Following its presidency term from 2010 to 2013, Anadolu has now been elected to the Executive Board and vice presidency of OANA for a fifth consecutive time. During the General Assembly, the OANA presidency for the 2025 - 2028 term was handed over from Iran's official news agency, IRNA, to Tass. Tass General Director Andrey Kondrashov assumed the presidency of OANA, while Tass Deputy General Director Mikhail Gusman was elected secretary-general. Azerbaijan's state news agency, AZERTAC, was selected to host the 2028 General Assembly. The event concluded with a group photo of representatives from OANA member agencies. Formed in 1961 on UNESCO's initiative, OANA promotes and facilitates cooperation among member agencies to serve their common interests and help them exchange information and experience.
