The economic attack against Russia has failed

Russian President V.Putin emphasized that Russia’s financial companies, large enterprises, and small and medium enterprises are facing unprecedented pressure. The banking system was the first to be affected by the sanctions, but Russian banks have coped with the challenge.

According to him, the second wave of sanctions is aimed at causing panic in the trade sector. It is estimated that in the past three weeks, the demand for additional goods has exceeded 1 trillion rubles. But domestic manufacturers, suppliers, transport and logistics companies have done everything to avoid large-scale shortages in retail chains.

President Putin declared that the economic attack against the Russian Federation had failed; Russia will overcome these difficulties: “The Russian economy will certainly adapt to the new reality. We will strengthen our technological and scientific sovereignty, allocate more resources to support agriculture, industrial production, infrastructure, housing construction, and continue to develop foreign trade relations to towards dynamic and fast-growing international markets”.

In the current situation, he said, there would be no problem with funding from the federal budget. Simply put, the Central Bank will not need to print money. Russia has enough market income, healthy. The main difficulties are related to the supply of components, equipment, construction materials and work organization of contractors.

This requires the coordination of authorities and business representatives, speeding up the implementation of import substitution projects, which is important.

According to the Russian president, private enterprises should play a key role in overcoming outstanding problems in the economy, reducing administrative barriers to business and providing targeted assistance, including including concessional loans, participation in public procurement and other incentives.

The Russian leader highly appreciates the position of foreign companies that, despite pressure from the US and other countries, continue to operate in Russia. In the future, they will definitely get more opportunities for development.

President Putin noted that the new realities will require profound structural changes in the economy, they will not be easy, they will lead to a temporary increase in inflation and unemployment. He did not rule out rising inflation in the short term due to rising import prices, amid a weakening ruble.

Now, the authorities must ensure the availability of essential items and medicines. He instructed to control prices, eliminating manual intervention in prices. The federal antitrust agency and the government will take over. At the same time, the government will increase social support.

President Putin said: “I understand that rising prices are seriously affecting people’s incomes. So soon we will make a decision to increase all social benefits, including pensions and pensions. We will increase the minimum wage and the minimum standard of living, as well as increase wages in the budgetary sector.”

President Putin signed the Decree on measures to ensure socio-economic stability and protection of the population in Russia, which adds the powers of the heads of regions. They will be able to make flexible operational decisions to support the local economy and people.

Regions will also be exempt from paying budget loans this year, and payments on commercial loans, if necessary, will be replaced with the budget.