Russian President Vladimir Putin announced at the St. Petersburg International Economic Forum that nearly 40% of Russia’s trade turnover is now conducted in rubles, as the use of “non-friendly” Western currencies like dollars and euros has decreased. He emphasized the importance of strengthening trade relationships with countries friendly to Russia, which currently make up three-quarters of the country’s trade volume. Putin also highlighted the need to increase settlements in the currencies of BRICS countries, such as Brazil, Russia, India, China, and South Africa. The share of the ruble in import and export operations has risen to almost 40%, up from 30% a year ago and 15% in previous years.
Putin outlined plans for a major overhaul of Russia’s domestic financial market, with goals to double the value of the Russian stock market by the end of the decade, reduce imports, and increase investment in fixed assets. Despite facing international sanctions in response to its invasion of Ukraine in 2022, Russia’s economy is expected to grow faster than advanced economies this year. The International Monetary Fund projected a 3.2% growth rate for Russia in 2024, surpassing the predicted rates for the U.S., Germany, France, and the U.K. Russia has adapted to Western sanctions by increasing self-sufficiency, maintaining oil export revenues, and expanding trade relationships with countries like India and China.
The conflict in Ukraine, which began over two years ago with Russia’s invasion, continues to escalate as Moscow secures tactical advances in the region. Western leaders, including U.S. President Joe Biden and French President Emmanuel Macron, reaffirmed their support for Ukraine at the recent D-Day international commemoration ceremony. Ukrainian President Volodymyr Zelenskyy emphasized the importance of unity in defending freedom and democracy, calling for continued support in the face of Russian aggression. Putin’s threat to supply long-range weapons to unspecified actors for strikes against the West in response to Western weapon restrictions on Ukraine further heightens tensions in the region.
In conclusion, Putin’s remarks at the St. Petersburg International Economic Forum reflect Russia’s efforts to strengthen economic ties with friendly countries and reduce reliance on Western currencies. Despite facing international sanctions, Russia’s economy is expected to outpace advanced economies this year, driven by self-sufficiency and robust export revenues. The ongoing conflict in Ukraine and heightened tensions with Western countries add complexity to Russia’s geopolitical and economic strategies. It remains to be seen how developments in the region will impact Russia’s long-term economic stability and global relationships.
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