Putin says Russian economy to expand within two years

Russia’s economy to expand within two years despite western sanctions, says Russian President Vladimir Putin

Updated Jul 28, 2015

Confidently assuring viewers of Thursday’s call in show that the worst is over for Russia, Russian President Vladimir Putin stated that they are ready to stand against any economic crisis that comes in their way despite Western sanctions while noting the economy is expected to grow in the next two years.

Russian leader stated that current sanctions are benefiting the country as they are reducing their dependence on oil and imports, focusing on domestic high-tech industries and agricultural production.

“If we preserve a stable situation in domestic politics, preserve the current consolidation of society, we shouldn’t fear any threats” he said.

Pointing the finger at the West for Russia’s economic problems, Putin stated that economic recovery is near.

“With what we are seeing now, the strengthening of the rouble and the growth in the markets… I think that it may happen faster… but somewhere in the region of two years,” Putin said.

An indication of Russia’s robust economy is evident through its recent developments on its currency.

The rouble declined by 0.9 percent against the U.S dollar during Thursday’s national call-in however, it has been the only currency to hold strong against the dollar. Rouble has appreciated against the U.S. dollar by 55 percent since November. Due to expectations of future interest rate hikes from Fed, the dollar is continuing to remain strong.

Putin also mentioned that agricultural production has increased by 3.7 percent in the country.
According to experts, the Russian economy will depreciate by 3 to 5 percent, but according to Putin these figures are expected to be lower.

Current sanctions haven’t demotivated Putin as he believes it could be used to benefit the Russian economy.

“Sanctions make an impact, contribute to our troubles, but [are] not the main thing,” he said.

A year has passed since the country seized the Crimea peninsula from Ukraine, however, the tension between the West and Russia continues.

Western leaders claim that they have powerful evidence that Moscow has provided pro-Russian protesters fighting in Ukrainian government forces in east Ukraine with armed forces.

However, Putin has denied allegations and criticized superpowers of “considering themselves the only center of power.”

TRTWorld and agencies