Putin vows to defy sanctions
October 2, 2014
Speaking to the VTB Russia Calling investment conference in Moscow on Thursday, Vladimir Putin said current difficult economic conditions would not stop the Russian economy from becoming stronger and more independent.
As Russia suffers from a series of punitive measures from the EU and the United States over the Ukraine crisis, the Russian President sought to reassure investors at home and abroad about government efforts to retain a healthy balance sheet and not restrict the free movement of capital.
The Russian economy has seen a massive outflow of capital this year, driving down the value of the ruble and weakening economic growth. This was mainly the result of Western sanctions, which include a ban on sensitive technologies and cutting off Russian firms from capital markets in the West.
Putin renewed a former pledge to sanctions-hit Russian firms for state support.
"The government is prepared to support sectors and companies that have been hit by unwarranted foreign sanctions. This would include helping them raise capital. First and foremost, I mean financial institutions," he said.
In a fist step, a sum of at least 30 billion rubles ($758 million, 599 million euros) in state aid would be transferred to the chartered capital of VEB bank this year, he added.
Putin also reiterated the importance of developing ties with the country's partners to the east, lauding companies that had already done deals with China.
"Our task is to bring about an industrial breakthrough, to create strong national companies in manufacturing sectors that are able to produce competitive products," he noted.
Putin's attempts to make Russia more independent from the West will also include a shift to national currencies in trade deals. This is intended to reduce Russia's reliance on the US dollar, notable in pivotal oil and gas exports.
"In the future we aim actively to use national currencies in energy resources trade to settle international trade accounts, with China and other countries," Putin said, describing the move as a mechanism to curb risks.
uhe/cjc (Reuters, dpa)