Putin: Western Sanctions Have Severely Hurt the Russian Economy

The President of Russia, in an interview with a German newspaper published on Monday, January 21, stated that Western sanctions due to the Ukraine crisis have impacted the Russian economy. Vladimir Putin told the 'Bild' newspaper, parts of which were published by the French news agency, 'Regarding access to financial markets, the sanctions severely harm Russia.' At the same time, he described the EU sanctions as 'a ridiculous show.' Russia has been subjected to a series of economic sanctions by the US and the EU due to its support for rebels in eastern Ukraine and the annexation of Crimea. The Ukraine conflict has resulted in over 9,000 deaths since April 2014. The EU extended its sanctions against Moscow for another six months in late December, citing Russia's failure to comply with the Minsk peace agreement to resolve the Ukraine crisis. In another part of his interview with 'Bild,' the Russian president said, 'The biggest damage we are currently facing is the decline in energy prices.' Mr. Putin stated, 'We are suffering from the dangerous loss of revenues from our oil and gas exports, part of which we can compensate through other means.' He noted, 'However, there is a positive aspect to this: if you have higher oil revenues—as we once did—you can buy everything from abroad, which slows down development in your country.' According to the Russian president, the country is 'gradually stabilizing' its economy. He added, 'GDP fell by 3.8% last year. Inflation peaked at 12.7%. However, the trade balance remains positive.' Mr. Putin mentioned that Russia is 'for the first time in years increasing the export of high value-added goods, and the country's gold reserves amount to $300 billion.'