Russia Sees Third Straight Year of Rising Investments Amid External Challenges – Putin
/ Go to the mediabankVladimir Putin 
Vladimir Putin delivered a speech on Russia’s economy and its part in the global value chain, touching upon financial issues and welcoming foreign investors to the Russian stock market. Investments in fixed capital by the Russian business sector are growing for the third year in a row, despite all the difficulties that have emerged or that are being created from the outside, Russian President Vladimir Putin said on Wednesday.”Taking into account all the difficulties, investments in fixed capital of Russian business have been growing for the third year in a row, despite all the problems that we are experiencing or that they are trying to create for us from the outside,” Putin said at VTB’s “Russia Calling” investment forum.The Russian Federation will continue to strengthen the capital market, and support companies entering the stock exchange, the president added.
Economic Growth Buttressed By High Added Value Industries
Russia’s GDP has grown by 4.1% in January-October this year, and the main growth is concentrated in manufacturing industries, namely, in sectors with high added value, President Putin said on Wednesday.
"Last year, Russia's gross domestic product grew by 3.6%. This is well known. And in January-October of this year, it increased by 4.1%. Moreover, [this] growth is mainly concentrated in manufacturing industries, that is, in sectors with high added value. So, in 10 months, our manufacturing industry has increased by more than 8%, or rather 8".
The Russian economy will grow by approximately 4% this year, Putin said on Wednesday.
"This year … Russia's economy will expand, last year it was 3.6%, this year it will be around 4%: 3.9%, or maybe 4%," Putin said.
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Russia’s Stock Market Welcomes Those Who Want to Invest with Comfort
Russia has invited investors from friendly countries to the country’s stock market, President Vladimir Putin stressed.
"Of course, we are inviting investors from friendly countries to our stock market … Russia is part of the global economy and we welcome reverse capital flows," Putin stated.
Putin added that no one was forced to abandon the Russia market, and many Western companies have decided to stay despite pressure.
"I have already said, I think, at the last forum, and in general I always say this at every opportunity: we did not kick anyone out, we did not force anyone out of our market," Putin stressed, adding that many Western companies have stayed in Russia despite "political pressure."
Balanced Economic Policy in Russia
The Russian cabinet of ministers and the Central Bank have been pursuing a balanced policy, Putin underscored.
"From January to October of this year, the surplus of the country's consolidated budget and off-budget funds was about 2.5 trillion rubles [$24 billion], while expenses … amounted to less than 35% of GDP, which corresponds to the level of 2021. This suggests that the government and the central bank are pursuing a very balanced policy," Putin noted.
Putin also noted that it is necessary to contain inflation in Russia, adding that coordinated actions by the Central Bank and the government are needed to curb inflation.
EconomyRussia-ASEAN Trade Exceeds $17Bln With 10% Growth in Nine Months27 November, 13:03 GMTAll the elements of Russia’s national digital infrastructure for the financial sector have been developed and are successfully functioning, which is a major competitive advantage for the Russian economy, Putin added.”According to experts, one of the most important long-term factors for global growth will be the implementation of the National Digital Infrastructure in the financial sector. In some countries, for example, in the EU countries, in Australia, in Singapore, only certain elements of such an infrastructure have been mastered so far. But in Russia, all its elements have already been formed and are working successfully,” Putin said.Settlements using the digital ruble in Russia should be possible nationwide from July 1, 2025, the Russian president added.Meanwhile, BRICS is trying to focus on the creation of a unified digital payment system.
"We are trying to give our BRICS colleagues due attention to it. I repeat, not only because whoever creates some problems for us, which are, of course, serious, and to a certain extent they hinder us, problems with settlements. But also because, most importantly, the world economy is developing, … the number of partners is increasing, and everyone wants not only safe ways of economic communication and settlements. Everyone wants modern means of settlements," Putin said.
Healthy Business Climate in Russia
Russia is among the leaders in terms of the quality of the business climate, Russian President Vladimir Putin stressed.”A study showed that Russia is among the global leaders in the investment climate rating, while Russia is certainly ahead of all countries in terms of the regulatory framework and the quality of public services. And in terms of such parameters as business registration, real estate management, it confidently ranks second,” Putin said.
EconomyRussia Becomes EU’s Largest Gas Exporter for 1st Time Since May 2022 – Statistics21 November, 04:40 GMTRussia seeks to strengthen economic sovereignty and technological leadership, Putin said.”Russia unites the efforts of the state, society and business in strengthening economic sovereignty, in achieving technological leadership of our country, in developing a stable nationally oriented banking system and a strong financial and stock market,” Putin added.
Disrupted Trade Ties Triggered Eurozone’s Tough Times
The problems that European economies are facing are not only related to the loss of energy resources from Russia, but also to the disruption of trade links and logistics, Russian President Vladimir Putin explained.
"The European economy is going through difficult times. Of course, the severing of ties with Russia plays a serious role not only because Germans and other Europeans have lost the opportunity to receive stable Russian energy resources at acceptable prices, but also for other reasons. For example, it is impossible to sell their products on our market, it is impossible to supply components to those companies that were previously established by European investors in our country, it is impossible to use logistics routes that also brought a certain profit, it is impossible to use the European currency, the euro, for payments," Putin explained.
Putin took the United States to task, by pointing out that Washington was not behaving like a true ally regarding energy relations with Europe.
"The Americans forbid you [Germany] to use the Russian market, to utilize our relatively cheap energy resources, while the United States itself creates conditions for more favorable involvement by European [including German] investors in the economy of the United States. To put it bluntly, this behavior is far from what one would expect from an ally. But I do not want to go into these details here. Germany knows this very well," Putin specified.
No Special Treatment for Western Corporate Comeback
Russia will not create special conditions for Western companies that want to return to the Russian market, but it will not hinder this desire either, Russian President Vladimir Putin said.”Will we create conditions for those who want to return? We will not create special conditions. We did not push anyone out, we did not forbid anyone, our doors are open,” Putin stressed.Putin noted that Moscow would not prevent the return of Western companies to the Russian market.
Rapprochement Prospects with Western Nations and Stronger Partnership with China
President Putin said on Wednesday that he hopes that there will be a normalization of relations with Western countries, as both parties have interest in this.”I hope that our relations with our Western partners will normalize sometime. And, first of all, because they are interested in it themselves, but we also have an interest, of course,” Putin stressed.Meanwhile, Moscow is cultivating ties with China regardless of the events in Ukraine, because this Asian powerhouse has been a long-standing trade and economic partner of Russia.”Our relations with China are developing regardless of the events that take place in Ukraine. China has long been our largest trade and economic partner,” Putin said.Vladimir Putin also recalled that Russia and Germany have enjoyed decades of good relations and mutual understanding.”Now, everything from the East is better than from the West: look at the conditions that are created for the German economy here in Russia and on the part of your traditional allies and partners, now we are only talking about the business environment. But our doors are always open, we have always had very good relations with Germany for decades, we understood each other very well,” Putin said.The Russian president emphasized that economic decisions should not be influenced by political motives, highlighting the significance of maintaining sovereignty. He further remarked that German automaker Volkswagen should never have exited the Russian market, asserting that this “mistake” has resulted in substantial lost profits for the company.
Decline of Dollar Dominance Triggered by Biden Administration
The administration of US President Joe Biden is doing a lot to undermine the dollar’s influence on the global stage, the Russian head of state pointed out.
"The newly elected president [of the United States, Donald Trump] has not been in the same White House for four years… And during this time, there have been certain changes in the economy, globally and in the US… His successors and his political opponents have done a lot to undermine the fundamentals of the dollar as the world's reserve currency. And, first of all, they did it with their own hands, using the dollar as an instrument of political, and maybe even armed struggle," Putin stressed.
Russia did not abandon the US currency, rather, Moscow was denied access to the greenback, Putin emphasized. He also noted that even countries allied with the United States are reducing their gold and foreign exchange reserves held in dollars and euros.
"Even countries that are unconditional allies of the United States are reducing their gold reserves, and gold and foreign exchange reserves, both in dollars and euros, by the way. Over the past ten years, the reduction has been approximately 13%. This is a significant amount. Moreover, this has been occurring naturally. And no one will be able to reverse these processes, especially with the help of sanctions and forceful methods, which are destructive to the economy," Putin noted.
Meanwhile, Putin is reluctant to give any advice to US President-elect Donald Trump.
"Mr. Trump is the kind of person who does not need advice or recommendations," Putin stated.
