Putin mocks collapse of Western economy, reveals Russian gains billions of dollars despite economic warfare

Russia’s President Vladimir Putin has mocked the West and its barrage of sanctions imposed against Russia over its invasion of Ukraine.

“The West “expected to quickly upset the financial-economic situation, provoke panic in the markets, the collapse of the banking system and shortages in stores,” he said on Monday in a televised video call with top economic officials.

.According to him, “the strategy of the economic blitz has failed” and instead led to a “deterioration of the economy in the West”.

Putin noted that “Russia has withstood the unprecedented pressure”, arguing that the rouble has strengthened and the country has recorded a historic high trade surplus of $58bn in the first quarter of the year.

Instead, he contended that the sanctions backfired against the United States and its European allies, speeding up inflation and leading to a drop in living standards.

He however admitted a hike in consumer prices in Russia, saying they rose by 17.5 percent as of April on a year-to-year basis and directing the government to index wages and other payments to alleviate the impact of inflation on incomes.

Putin said Russia should use its budget to support the economy and liquidity in conditions of contracting lending activity even though the central bank’s rate cuts will make lending cheaper.

He also said Russia should speed up the process of using national currencies in foreign trade under the new conditions.