Putin says ‘peak’ of sanctions impact has passed

Russian President Vladimir Putin said on Wednesday that Russia had passed the “peak” of economic difficulties stemming from Western sanctions imposed on Ukraine.

“We think the peak of the situation has passed. The situation is normalizing,” Putin told the Eastern Economic Forum in the peaceful city of Vladivostok.

Read also : Why Vladimir Putin still enjoys broad support in Russia

He underlined the improvement in economic indicators, in particular “an unemployment rate at its lowest, at 3.9%” and “lower inflation”. Western sanctions have targeted Russia’s energy and banking sectors in particular.

Inflation in the country hit its highest level in two decades in April. It has since slowed somewhat, but remains high, standing at 15.1% in July.

Read also : Hit by sanctions, Russian growth could slow to 0.5%

“Rising prices still pose a certain threat,” Putin conceded, as “it affects living standards and the economy” as a whole. He admitted there were still “problems” with the imposition of sanctions, “particularly for companies sourcing from Europe”.

But he added that Russia’s abundance of natural resources would protect the country.

Read also : Russian economy will decline 2-2.5%, says President Vladimir Putin after 6 months of war in Ukraine

“Russia is perhaps the only country capable of being self-sufficient in natural resources,” Putin said, as “one by one jobs and businesses are disappearing in Europe.”

The Russian central bank forecasts an economic contraction of 4-6% for the whole of 2022, then a further contraction of 1-4% for 2023, before growth resumes in 2024.

This story was published from a news feed with no text edits.

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Carol N. Valencia