Latest news with #WesternSanctions
Yahoo
10 hours ago
- Business
- Yahoo
Putin boasts about Russia's economy despite recession fears
President Vladimir Putin has hailed Russia's economic outlook, saying it has managed to curb inflation and ease its reliance on energy exports. His optimistic account in a speech at the St Petersburg International Economic Forum contrasted with sombre statements by some members of his government, who warned at the same conference that Russia could face a recession. Economic Minister Maxim Reshetnikov had said that the country is 'on the brink of going into a recession'. Mr Putin mentioned the recession warnings, but emphasised that 'it mustn't be allowed'. He pointed out that manufacturing industries have posted steady growth, allowing the country to reduce its reliance on oil and gas exports. 'The perception of Russian economy as based on raw materials and dependent on hydrocarbons exports have clearly become outdated,' Mr Putin said, adding that the economy grew by 1.5% in the first four months of 2025 and inflation has dropped from double digits to 9.6%. Mr Putin has used the annual forum to highlight Russia's economic prowess and encourage foreign investment, but Western executives have shunned it after Moscow sent troops into Ukraine in 2022, leaving it to business leaders from Asia, Africa and Latin America. The economy, hit with a slew of Western sanctions, has so far outperformed predictions. High defence spending has propelled growth and kept unemployment low despite fuelling inflation. Large recruiting bonuses for military enlistees and death benefits for those killed in Ukraine also have put more income into the country's poorer regions. But over the long term, inflation and a lack of foreign investments pose threats to the economy. Economists have warned of mounting pressure on the economy and the likelihood it would stagnate due to lack of investment in sectors other than the military. Mr Putin said the growth of military industries helped develop new technologies that have become available to the civilian sector. He vowed to continue military modernisation, relying on lessons learned during the fighting in Ukraine. 'We will raise the capability of the Russian armed forces, modernize military infrastructure and equip the troops with cutting-edge equipment,' Mr Putin said.
Associated Press
11 hours ago
- Business
- Associated Press
Putin boasts about Russia's economy despite recession fears
ST. PETERSBURG, Russia (AP) — President Vladimir Putin on Friday hailed Russia's economic outlook, saying it has managed to curb inflation and ease its reliance on energy exports. His optimistic account in a speech at the St. Petersburg International Economic Forum contrasted with somber statements by some members of his government who warned at the same conference that Russia could face a recession. Economic Minister Maxim Reshetnikov had said Thursday that the country is 'on the brink of going into a recession.' Putin mentioned the recession warnings, but emphasized that 'it mustn't be allowed.' He pointed out that manufacturing industries have posted steady growth, allowing the country to reduce its reliance on oil and gas exports. 'The perception of Russian economy as based on raw materials and dependent on hydrocarbons exports have clearly become outdated,' Putin said, adding that the economy grew by 1.5% in the first four months of 2025 and inflation has dropped from double digits to 9.6%. Putin has used the annual forum to highlight Russia's economic prowess and encourage foreign investment, but Western executives have shunned it after Moscow sent troops into Ukraine in 2022, leaving it to business leaders from Asia, Africa and Latin America. The economy, hit with a slew of Western sanctions, has so far outperformed predictions. High defense spending has propelled growth and kept unemployment low despite fueling inflation. Large recruiting bonuses for military enlistees and death benefits for those killed in Ukraine also have put more income into the country's poorer regions. But over the long term, inflation and a lack of foreign investments pose threats to the economy. Economists have warned of mounting pressure on the economy and the likelihood it would stagnate due to lack of investment in sectors other than the military.
Reuters
a day ago
- Business
- Reuters
Russia's VTB still plans to open a branch in Iran but will wait for hostilities to end first, CEO says
Russia, June 19 (Reuters) - Russia's second largest lender VTB still plans to open a branch in Iran, but will wait for hostilities between Israel and Tehran to end and is analysing the situation, VTB CEO Andrei Kostin said on Thursday. VTB, which is under Western sanctions, opened a representative office in Iran in 2023 and has applied for a banking licence. Israel bombed nuclear targets in Iran on Thursday and Iranian missiles hit an Israeli hospital overnight, as the week-old air war escalated with no sign yet of an off-ramp. "We do not know, nobody knows how the situation will develop there. We are analysing the situation," Kostin told reporters on the sidelines of Russia's biggest economic forum in St. Petersburg. "We applied for a licence, now we will wait, we will not take any action," Kostin said. "We are not in a hurry, let the shooting stop first." Kostin said that Iran had become a significant trading partner for Russia in recent years, but that doing business there was difficult. "We saw that there is a substantial business there, but it is not an easy place for business. The currency regulation there is very complex," Kostin said. A Russian-led Eurasian Economic Union (EEU) free trade deal with Iran took effect in May. Iran's Oil Minister Mohsen Paknejad, who visited Moscow in April, said that the free trade deal would increase bilateral trade to $6 billion. Iran was the third-largest buyer of Russian wheat in 2024.
Al Jazeera
2 days ago
- Business
- Al Jazeera
What's the impact of the Israel-Iran conflict on oil prices?
As the Israel-Iran conflict escalates, every missile launched could reverberate through the global economy. At risk is 20 percent of the world's oil, which flows through the Strait of Hormuz. Vital trade routes, the shipping industry, travel and tourism face threats too. Oil prices had soared to $76.45 a barrel. If they continue to go up, it would push up the cost of living all over the world. Iran's economy is reeling under Western sanctions. But as Israel presses to choke it even further and with its war on Gaza continuing, its own economy is under extreme stress too.
Yahoo
23-05-2025
- Business
- Yahoo
Russia's sanctioned tanker group Sovcomflot plunges to $393 million loss
(Reuters) -Russia's leading tanker group Sovcomflot plunged to a net loss of $393 million in the first quarter, blaming the slump on new Western sanctions that have led to operational problems, lower revenues and some sanctioned vessels sitting idle. The United States and the European Union imposed sanctions on Sovcomflot and its fleet in 2024 to try and reduce Russia's revenue from oil sales that it can use to finance its war in Ukraine. In January, the United States added new Sovcomflot vessels to the list of sanctioned assets and withdrew a U.S. licence, granted last year, that had allowed some vessels in its fleet to operate despite sanctions. Sovcomflot, which reported a 49% year-on-year drop in first-quarter revenue to $278.5 million, said the January sanctions had been particularly impactful, creating additional commercial and operational difficulties. "The intensification of Western sanctions has made it more difficult to operate the fleet and led to lower revenues and downtime for some sanctioned vessels," Sovcomflot said in a statement. "In the reporting period, unprecedented sanctions restrictions were imposed on the company and its vessels, which created additional commercial and operational difficulties in operating the fleet," Sovcomflot said. The group's earnings before interest, tax, depreciation and amortisation (EBITDA) fell almost 69% year-on-year to $105 million. Sovcomflot considers the sanctions to be illegal. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
