President Putin: The economic attack against Russia has failed

On March 16, Russian President Vladimir Putin chaired a meeting on socio-economic support measures for the regions. The Russian leader pointed out the difficulties and pressures on the economy caused by sanctions, and affirmed that the country will overcome them.

Russian President V. Putin stressed that financial companies, large businesses, small and medium-sized enterprises of Russia are facing unprecedented pressure. The banking system was the first to be affected by sanctions, but Russian banks have coped with this challenge.

According to him, the second wave of sanctions is aimed at causing panic in the trade sector. It is estimated that over the past three weeks, the demand for additional goods has exceeded 1,000 billion rubles. But domestic manufacturers, suppliers, transport and logistics companies have done everything possible to avoid large-scale shortages in retail chains.

Russian President V. Putin. Photo: Tass

President Putin declared that the economic attack against the Russian Federation had failed; Russia would overcome these difficulties: “The Russian economy will certainly adapt to the new reality. We will strengthen our technological and scientific sovereignty, allocate more resources to support agriculture, industrial production, infrastructure, housing construction and continue to develop foreign trade relations aimed at fast-growing and dynamic international markets.”

He believes that in the current situation there will be no problems with funding from the federal budget. Simply put, the Central Bank will not need to print money. Russia has enough healthy market income. The main difficulties are related to the supply of components, equipment, building materials and the organization of work by contractors.

This requires coordination between authorities and business representatives, speeding up the implementation of import substitution projects, which is important.

According to the Russian President, private businesses need to play a key role in overcoming outstanding problems in the economy, reducing administrative barriers for businesses and providing targeted support, including preferential loans, participation in public procurement and other incentives.

The Russian leader highly appreciated the position of foreign companies that, despite pressure from the US and other countries, continue to operate in Russia. In the future, they will certainly receive more opportunities for development.

President Putin noted that the new realities will require deep structural changes in the economy, which will not be easy, and will lead to a temporary increase in inflation and unemployment. He did not rule out a short-term increase in inflation due to rising import prices amid a weakening ruble.

Now the government must ensure the availability of essential goods and medicines. He has ordered price controls, eliminating manual intervention in prices. The federal antitrust agency and the government will take charge. At the same time, the government will increase social assistance.

"I understand that rising prices are seriously affecting people's incomes. Therefore, in the near future we will make a decision to increase all social benefits, including benefits and pensions. We will increase the minimum wage and the minimum living standard, as well as wages in the budget sector," said President Putin.

President Putin has signed a decree on measures to ensure socio-economic stability and population protection in Russia, which will give additional powers to the heads of regions. They will be able to make flexible operational decisions to support the economy and the population in their areas.

Regions will also be exempted from paying budget loans this year and payments for commercial loans, if necessary, will be replaced by the budget./.