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Putin: EU to lose over $ 400 billion over sanctions against Russia – No responsibility for rising energy prices

LAST UPDATE: 22.44

“Our partners in the West have deliberately undermined international foundations in the name of their geopolitical illusions,” Russian President Vladimir Putin said in a speech at the St. Petersburg International Economic Forum, according to the Russian news agency Novosti.

The Russian president noted that the current changes in the economy and international politics are revolutionary. Putin has argued that the West is trying to counter the course of history, thinks in terms of the last century, has illusions and does not want to see change.

“The West is ruthlessly imposing its morals and culture, including on sports,” Putin said.

The Russian president claimed that domestic companies and authorities worked together during the imposition of sanctions on Russia.

The ominous forecasts for the Russian economy, heard in early spring, have not been verified, the Russian president said. According to him, estimates for the dollar at 200 rubles and other Western forecasts were part of the information war against Russia.

Putin said that 16.7% is a big indicator of inflation and that the authorities will work to reduce it and that the economy will stabilize. Moscow will work to meet the 4% inflation target. “Russia has enormous potential,” he added. He also said that interest rates will be reduced to 7%. “Invest in Russia,” Putin’s message to businessmen. Despite the economic turmoil and looming recession, which will be the deepest contraction in Russia for at least two decades, Putin said Moscow would stick to a “responsible macroeconomic policy.” He said the government’s spending plans should be “predictable”. “We have to be one step ahead, to create our own competitive goods,” he said.

Putin called for the creation of mechanisms that would guarantee demand for innovative products entering the Russian market.

Putin went on to say that European leaders themselves had dealt a severe blow to their economies. The European Union’s immediate losses from sanctions alone could exceed $ 400 billion a year. As Putin stressed, these costs will be borne by the citizens. “Western sanctions were based on the erroneous assessment that Russia has no economic sovereignty,” he said.

The Russian president is convinced that the EU is losing its global competitiveness due to sanctions against Russia.

Putin predicts further increase in inequality in Europe and unrest due to poor financial management. In his view, the current situation will lead to an escalation of radicalism and, in the long run, a change of elites.

Putin has argued that what is happening in the world is not the result of events in recent months, including the Russian special operation in Donbass, which all started a long time ago because of the irresponsible policy of the G7 countries.

“Our troops are defending Russia’s rights to safe development,” he said, adding that all the goals of the “special military operation” – as the Kremlin calls the war in Ukraine – would be achieved. “The military operation is aimed at defending the people of Donbass.” The decision on the military operation was difficult but imperative, the Russian president said.

The Russian president noted that while the United States was a major food supplier, it has now become a net importer – printing money and buying food around the world.

A failed energy policy has contributed to rising prices in Europe, Russia had nothing to do with rising energy prices, fuel prices had started to rise long before the special operation, Putin said. “I hope that gas flows through new roads will increase soon,” he said.

Putin noted that Russia could significantly increase food and fertilizer exports and that grain shipments could reach 50 million tonnes as early as next year. Putin said there were various options for exporting Ukrainian grain, but that the Kiev authorities had to decide how to do so “without being guided by their foreign bosses.” “There is a risk that Ukrainian grain will be used to buy weapons,” he said. Russia will send food to Africa and the Middle East, he said. Putin said it was important to boost the supply of food to the world market. “The lack of fertilizers could further boost food prices,” he warned.

He also accused the West of supplying weapons to Ukraine and fueling Russophobia in the country.

The Russian president stressed that the pandemic and current events have confirmed the importance of flexibility and adaptation to external conditions. He added that it is necessary to ensure economic growth by supporting private companies. “Entrepreneurial freedoms are an important point in our long-term development plan,” he said, adding: “We will also deal with Western companies.”

Putin also said that Russia would expand cooperation with those who wish. “Russia will never follow the path of self-isolation. Russia will develop as an open economy,” he said.

Putin also warned that Russia has supersonic missiles that no one else has.

Mr Putin has denied the allegations in a statement issued Friday stating “Similar, baseless allegations concerning Russia’s nuclear program have been made more than once. “We are not threatening anyone. But everyone should know what we have and what we will use, if necessary, to defend our sovereignty.”

Due to the war in Ukraine, which continues for the fourth month, there are many who express fears that in the worst case scenario, Russia may use nuclear weapons. Moscow has repeatedly denied these scenarios, stressing that, unlike the United States, it has not adopted the “first strike” in its military doctrine.

The Russian president also said that Russia expects the restoration of relations with Ukraine after the completion of the “special military operation” in that country.

Prior to the start of the Russian invasion of Ukraine, Putin recognized the two self-proclaimed People’s Republics of Donetsk and Luhansk as independent.

The Russian president did not shy away from referring to his compatriots who have stated that they feel ashamed of this war, saying: “You know, there are those who are ashamed, who do not connect the fate and lives of themselves and their children with the homeland us”.

During a question-and-answer session with Kazakh President Kassym-Jomart Tokayev, Putin said: “Sooner or later, the situation will return to normal.”

The Russian president also assured that Moscow is not opposed to a possible accession of Ukraine to the European Union. “We have nothing against it, it is their decision whether or not to join economic unions (…) It is their business, it is a matter for the Ukrainian people,” he said.

Russia, which has been invading Ukraine since February 24, sees Kiev’s ambition to join NATO, which Moscow sees as a threat to its security. “But in terms of their economic integration, it is their (Ukrainians’) choice,” Putin said.

“The EU is not a military alliance, unlike NATO,” he explained.

Nevertheless, the Russian president said that “Ukraine will become a half-colony” of Western countries if it joins the EU. “That is my view,” he added.

Source: Capital

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