Russian President Vladimir Putin has said that the West is reluctant to acknowledge the “irreversible tectonic shifts” in international relations and that the Asia-Pacific region has become a magnet for human resources, capital and production capabilities.
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Russian President Russian President Vladimir Putin The United States was accused, on Wednesday, of wanting to maintain a “dictatorship” over world affairs at the expense of Europe and the rest of the world.
Putin has repeatedly criticized the West during a speech to business leaders gathered in Russia’s Far East, saying that sanctions against Moscow for its invasion of Ukraine pose a “danger” to the whole world and have left Europe worse off.
“The pandemic has been replaced by new challenges of a global nature, bearing a threat to the whole world, and I’m talking about the rush of sanctions in the West and the West’s blatant aggressive attempts to impose their temporary method on other countries, to take them,” Putin told delegates at Russia’s Eastern Economic Forum in the ocean-coast city of Vladivostok. The pacifist for Russia “to cede their sovereignty and submit to their will.”
He added that “the high level of industrial development in Europe, the standard of living, social and economic stability – all this is throwing into the flames of sanctions.”
“They are wasting orders from Washington in the name of the so-called Euro-Atlantic unity. Although in reality they are being sacrificed for the sake of maintaining the American dictatorship in world affairs,” Putin said.
CNBC has contacted the White House for a response to Putin’s comments and is awaiting a response.
It is widely believed that Russia was surprised by the West’s firm and united response to its unprovoked invasion of Ukraine, which began in February, with an increasing number of sanctions being imposed on the Russian economy and on individuals and businesses associated with the country. The Kremlin.
The European Union is trying to phase out energy imports, especially natural gas, from Russia – a move that comes at a difficult time for the EU as it deals with rampant inflation and a cost-of-living crisis.
Not surprisingly, Moscow has taken a dim view of the sanctions and sought to circumvent the devastating economic consequences of these sanctions by turning to its allies in Asia to sell its oil. It has also now stopped all gas supplies to Europe via the Nord Stream 1 . gas pipelinesaying the sanctions prevent the pipeline from being repaired and working properly, a claim rejected by Siemens Energy, which supplied and maintained equipment for the pipeline.
Sergei Guriev, professor of economics at Sciences Po and a former chief economist at the European Bank for Reconstruction and Development, told CNBC that Russia is promoting a “false narrative” about the sanctions.
“The narrative is wrong when Putin’s economy hurts when you look at the actual numbers. In the second quarter of 2022, GDP was 6% lower than the first, and that’s an astonishing speed in the GDP decline. When you look at the drop in retail volume, consumer consumption Goods and services by Russian families, this [seen] About a 10% decrease. When you look at finances, July saw a deficit of about 8% of GDP and that was with an oil price of around $100. [a barrel]. “
Putin is not doing well but what he does with his gas blackmail in July and August is trying to divide Europe… [try to] Make sure that the Europeans will stop pressuring sanctions.”
Meanwhile, the war in Ukraine continues to bring untold misery, death and destruction to civilians.
The United Nations said this week that as of February 24 when the invasion began until September 4, 13,917 civilian casualties were recorded in Ukraine with 5,718 killed and 8,199 wounded – although the true figure is likely to be much higher given the chaotic nature of such wartime recording.
Millions of Ukrainians were displaced from the country during the war, with Russia accused of multiple war crimes and repeatedly targeting civilian infrastructure, which it denies despite the vast and growing body of evidence.
US President Joe Biden calls Putin a “war criminal” But on Tuesday Refusal to designate Russia as a state sponsor of terrorism, a designation called by Ukraine. The European Union has said that Russia is working to “weaponize” energy supplies to blackmail them in order to ease sanctions.
Russia currently occupies a large area of territory in eastern and southern Ukraine, but recently Kyiv forces launched a counter-offensive to regain the lost territory.
The Russian president, who has been largely ostracized by developed Western countries in the wake of Russia’s unprovoked invasion of Ukraine, said he believes the current situation has been precipitated by the “declining dominance” of the United States in global politics and the economy.
He said the West was reluctant to acknowledge the “irreversible tectonic shifts” in world politics and international relations, particularly the pivotal East.
Putin described the Asia-Pacific region as a “magnet” for human resources, capital and productive capabilities, and said that “despite this, Western countries are trying to preserve the old world order that only benefited from them.”
On Tuesday, Putin announced that China would pay for gas from Russia’s state-owned gas company Gazprom in both their currencies. rubles And the Chinese yuanindicating another attempt by both countries to marginalize the dollar.
“Western countries have undermined the basic pillars of the global economic system that was built over centuries,” Putin said.
“We have seen a loss of confidence in the dollar, the euro and the pound as currencies in which you can transact, hold deposits or assets, and for this reason, step by step, we are moving away from the use of these shady and unreliable currencies.”
Russia itself faces a harsh winter as the central bank expects a deep contraction in the third quarter.
Reuters reported last month, citing a central bank report, that gross domestic product will decline by 7% in the third quarter after contracting by 4.3% in the second quarter. The bank expected the economy to begin to recover in the second half of 2023. The inflation rate was 15.1% in July, Above the EU rate of 9.8% in the same month.
Speaking to business leaders on Wednesday, Putin said Russia will run a budget surplus this year and that gross domestic product will fall “by about 2% or a little more”.