Russia’s President Vladimir Putin gestures during his speech during the Saint Petersburg International Economic Forum (SPIEF) on June 7, 2024 in Saint Petersburg.
Anton Vaganov | Afp | Getty Images
Russian President Vladimir Putin said on Friday that almost 40% of the country’s trade turnover is now in rubles, as the share denominated in dollars, euros and other “unfriendly” Western currencies has declined.
Speaking at the St. Petersburg International Economic Forum (SPIEF), Putin said that “Russia-friendly” countries deserve special attention as they will determine the future of the global economy, “and they already account for three-quarters of our trade volume.”
He added that Russia would seek to increase the share of settlements settled in BRICS currencies, citing an economic coalition of emerging economies that includes Brazil, Russia, India, China and South Africa.
Putin said payments for Russian exports in “so-called ‘poisonous’ currencies of unfriendly states” had halved in the last year.
“This means that the share of the ruble in import and export transactions is increasing and is now almost 40 percent,” Putin said, according to a translation. This is reportedly up from about 30% a year ago and higher than the 15% in the pre-war years.
The Russian president outlined plans for a comprehensive reform of the country’s domestic financial market, including plans to double the value of Russia’s stock market by the end of the decade, reduce imports and boost investment in fixed assets.
His comments come as the Kremlin uses SPIEF to promote new relationships with countries in Asia, Latin America and Africa.
In response to Moscow’s full-scale invasion of Ukraine in February 2022, the West has sought to cut off Russia’s $2 trillion economy. Still, Russia’s economy is expected to grow faster than all advanced economies this year despite several rounds of international sanctions.
In its April global economic outlook, the International Monetary Fund said it expects Russia to grow 3.2% in 2024, exceeding the U.S. forecast growth rate of 2.7% (2.7%). Even lower economic growth of less than 1% is forecast for Germany, France and the United Kingdom.
Russia says Western sanctions on its critical industries have made the country more self-sufficient and that private consumption and domestic investment remain resilient. Continued oil and raw material exports to countries such as India and China, as well as alleged sanctions evasion and high oil prices, have allowed Moscow to maintain solid oil export revenues.
Ukraine war
Fighting has been raging in Ukraine since Russia launched its full-scale invasion more than two years ago. In recent weeks, Moscow’s troops have secured tactical advances in the north and northeast of Ukraine.
Western leaders marked the 80th anniversary of D-Day on Thursday with an impassioned call for continued support for Ukraine. At the international D-Day commemoration ceremony, US President Joe Biden said it was “simply unthinkable” to bow to Russian aggression and vowed not to weaken US support for the Eastern European country.
French President Emmanuel Macron joined Biden in praising Ukrainian forces for their courage in fighting Russian forces, adding: “We are here and we will not back down.”
Ukrainian President Volodymyr Zelensky, who also attended the ceremony on Omaha Beach, said on social media that the event served as a reminder “of the courage and determination shown in the pursuit of freedom and democracy.”
“The allies defended Europe’s freedom then, and Ukrainians continue to do so today. There was unity then, and true unity can still exist today,” Zelensky added.
Earlier this week, Putin reportedly said that Russia could begin supplying long-range weapons to unspecified actors for attacks against the West, in response to Ukraine lifting some Western restrictions on the use of weapons to attack military targets within of Russia.
— CNBC’s Holly Ellyatt contributed to this report.
Source link
2024-06-07 14:56:24
www.cnbc.com
