Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Putin says West is triggering a global economic crisis

Economy May 12, 2022 08:41AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The skyscrapers of the Moscow International Business Centre, also known as "Moskva-City", are seen just after sunset in Moscow, Russia July 12, 2018. Picture taken July 12, 2018. REUTERS/Christian Hartmann

(Reuters) -President Vladimir Putin said on Thursday that the West had triggered a global economic crisis and a wave of ruinous inflation by imposing on Russia the most severe sanctions in recent history over the conflict in Ukraine.

Putin's Feb. 24 order of a "special military operation" in Ukraine prompted the United States and its allies to impose sweeping sanctions on Russia and the Russian elite, steps the Kremlin chief casts as a declaration of economic war.

The West's sanctions, Putin said, were fomenting a global crisis that would whiplash against the European Union and trigger famine for some of the world's poorest countries.

"The blame for this lies entirely with the elites of Western countries who are ready to sacrifice the rest of the world to maintain their global dominance," Putin said at a televised government meeting on the economy.

Still, Putin said, Russia was coping with the pressure.

"Russia is confidently coping with external challenges thanks to both the responsible macroeconomic policies of recent years and systemic decisions to strengthen economic sovereignty, technological and food security."

The West's attempt to economically isolate Russia - one of the world's biggest producers of natural resources - has propelled the global economy into uncharted waters with soaring prices for food and energy.

RUSSIA WILL SURVIVE

Russia's economy is on track to contract by more than 12% in 2022, the biggest fall in gross domestic product since the years following the 1991 fall of the Soviet Union, according to an economy ministry document seen by Reuters.

As an example of Russia's sound performance under sanctions, Putin pointed at the rouble's strength, saying it had become the best-performing currency this year.

The rouble firmed to 65 against the dollar on Thursday, a level last seen in early 2020, driven by capital controls that Moscow had to impose to shield the economy after Russia sent tens of thousands of troops into Ukraine on Feb. 24.

Putin also said that Russia, one of the world's largest wheat exporters, was on track to collect a potentially record harvest this year.

Putin told his ministers on Thursday he wanted to discuss steps needed for steady economic development and an increase in real incomes. Inflation in Russia is on track to post its highest reading since 1999.

Economy Minister Maxim Reshetnikov agreed with Putin that the economy was showing resilience, adding that the labour market situation was stable and inflation started slowing.

He said the main challenges facing the Russian economy were disruptions in supply chains and a significant reduction in imports.

Putin says West is triggering a global economic crisis
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (5)
Elezabeth Thomas
Elezabeth Thomas May 13, 2022 10:33PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
That HICK would say that.
Alan Rice
Alan Rice May 12, 2022 12:49PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Mr. President: Consider the (possibility ??) that A MAJOR PROBLEM MAY BE the existence of MANY extreme "wealth" anomalies. (West and East, North and South.) Think about it.
Sattar Langary
Sattar Langary May 12, 2022 9:19AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
everything is going downwards! i wish trump was still here.
carol ruszin
carol ruszin May 12, 2022 9:19AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Why so Trump could pat Putin on the back. Best buddies.
kadar supermarket
kadar supermarket May 12, 2022 9:19AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
huraaaaa huraaaaa
Hiren Modi
Hiren Modi May 12, 2022 8:47AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
well said 👍
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email