Putin estimated inflation in Russia at 17.5 percent. He accused the West of waging a “blitzkrieg” against the Russian economy with its sanctions after Russia’s invasion of Ukraine, which he said had failed. The economic situation has now stabilised, it said.
The president urged his administration to pump fresh money into the economy to revive consumption. “It is now of the utmost importance to support domestic demand again, to prevent it from contracting excessively,” Putin said. The resources are available, after “a record-high budget surplus” in the first quarter.
After the Russian invasion of Ukraine on February 24, the West imposed unprecedented economic sanctions on Moscow. Russia’s gross domestic product is expected to contract by 11.2 percent this year, according to the World Bank, the largest decline since 1994.