Vladimir Putin: "Sanctions can have a negative impact on the Russian economy"

Russian President Vladimir Putin during a meeting with members of his government, March 29, 2023. via REUTERS - SPUTNIK

Text by: Anissa El Jabri Follow

2 min

Until now, the Russian media has not missed an opportunity to illustrate the narrative of power: Western sanctions targeting Moscow for its offensive in Ukraine weigh just as much, if not more, on Western economies than on Russia's. Change in the discourse of power: for the first time on Wednesday, March 29, Vladimir Putin said that they would have an impact.

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From our correspondent in Moscow,

For months in Russia, every question put to the government about new Western sanctions has invariably or almost the same answer: "They hurt the West more than Russia.

From economic forums to speeches to entrepreneurs, the Russian president praised the resilience of his economy, the success of his pivot to the east.

That is to say if his change of tone on Wednesday, during a meeting with his ministers broadcast on television, is clear: "You must act quickly, without bureaucracy or unnecessary delays. Because the illegitimate restrictions imposed on the Russian economy in the medium term can really have a negative impact on it. In this regard, we must ensure a sustainable increase in domestic demand.

Unemployment at an all-time low, inflation under control

Vladimir Putin had, however, from the beginning of the conflict taken out the shock absorbers and drawn on budgetary resources, including a rain of various benefits, partial unemployment when the factories saw their Western owners leave.

Some indicators remain good, the Russian president also stresses it in his speech: unemployment is at its lowest level (3.6%) and inflation finally seems to be under control. When last year, it galloped at more than 20%, it should fall in March below 4% monthly rate in March.

Except that Western pressure is increasing. Turkey, Kazakhstan... these countries do not apply sanctions (they are not the only ones), but they receive repeated messages, especially American, not to help Moscow circumvent them. These two countries have indeed seen their bilateral trade with Russia explode in 2022.

► READ ALSO: The flourishing trade between Moscow and Beijing irritates Washington

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• Russia
• Ukraine