Russia "blocks" sanctions, lectures the West

(Baonghean.vn) - President Vladimir Putin said on Friday that Russia had found the "domestic strength" to prevent sanctions from causing a deep economic crisis, and sent a message to the West to stop using "the language of ultimatums".

Russian President Vladimir Putin speaks during a session of the St. Petersburg International Economic Forum 2015 (SPIEF 2015) in St. Petersburg, Russia, June 19.

Investment in Russia has been trickling, capital outflows have increased and the economy has slid into recession since oil prices fell sharply last year and the West imposed economic sanctions on Moscow over the Ukraine crisis.

But in a 29-minute speech at an economic forum and a question-and-answer session that lasted more than an hour, Mr. Putin ignored calls from many investors to announce a new plan to end the crisis. Instead, he warned the West not to interfere in Moscow’s affairs and blamed the conflict in Ukraine on the West, primarily the United States.

"I would like to point out that at the end of last year we were warned that there would be a deep crisis," Mr Putin said in a speech in the ancient capital of St Petersburg. "It did not happen. We stabilised the situation... mainly because the Russian economy is strong enough internally," he said.

Russia's central bank cut its key interest rate, inflation fell from 16.9% in April to 15.8% in May. Although banks forecast the economy contracting by 3.2% in 2015, Mr. Putin said, "We, businessmen, people and new leaders, are prepared to serve Russia and its development. Therefore, we are absolutely sure of success."

Pentagon spokesman John Kirby disagreed with Mr Putin's assessment. Despite Mr Putin's optimism, relations with the West are at their lowest point since the Cold War. Former Finance Minister Alexei Kudrin said on Thursday that Russia remains in the "eye of the storm".

“There are reservations (about attending Russia’s annual economic forum), but I think overall, Western companies want to continue working with Russia because … the opportunity space is huge,” said Hans-Paul Buerkner, president of the Boston Consulting Group.

Phuong Thao

(According to Reuters)