Putin: Western sanctions have ‘achieved certain results’ on Russian economy
Russian President Vladimir Putin said Tuesday that Western sanctions had “achieved some results” in affecting the Russian economy, but projected a challenge to the Kremlin’s war in Ukraine.
The Russian leader told a press conference that the US-led global sanctions campaign is a “blitzkrieg” that has “achieved some results” and said Moscow “must raise the interest rate by the central bank at 20%” but that it had dropped in recent days, according to comments translated by state media RT.
Global economists say the Russian government is exercising creative technocratic skills to stabilize the Russian currency and economy amid an unprecedented sanctions campaign, but is unlikely to be able to withstand a long-term large-scale economic contraction.
Rachel Ziemba, a member of the Center for a New American Security, wrote in an article for Barron that’s it “Russia’s apparent financial resilience, especially with regard to the ruble, is something of a mirage.”
Russia’s former finance minister Alexei Kudrin was quoted by state media as saying the country’s economy is on track to contract 10% in 2022, the biggest drop in gross domestic product since its exit from the Soviet Union in 1991, Reuters reported.
Putin, who made his remarks at a press conference alongside Belarusian President Alexander Lukashenko, also acknowledged that the Russian government needed to “allocate more resources…in the current situation” to support the economy, but boasted to work with countries that have not joined the United States. government-led sanctions regime.
“The economy will adapt to the new environment, make no mistake. If you cannot export to one country, there is always a third country. If you can buy something in one country, there is also a fourth country where you can get it, it’s inevitable… one country can no longer dominate the world.
Putin also threatened the world’s food supply, criticizing Western nations saying that “if they can’t work effectively with us, there won’t be enough food in world markets.”
The United Nations and human rights groups have raised concerns that Russia’s fighting in Ukraine, combined with sanctions, has halted global deliveries and raised the price of wheat and fertilizers , affecting 1.2 billion people.
“These prices keep going up and it’s all down to the mistakes of Western countries,” Putin complained.
“If our Western partners worsen the situation financially, in terms of insurance and maritime transport, the situation will worsen, including for them. High food prices and these problems will lead to hunger in many parts of the world, which will lead to more migration flows, including to Europe.