Putin Says Russian Economy Beginning to Develop According to New Model

MOSCOW (Sputnik) - Russia's economy is starting to develop in accordance with a new model, President Vladimir Putin said on Thursday.

During his address to the annual Congress of the Russian Union of Industrialists and Entrepreneurs, the head of state noted the active and creative position of the union, which is especially in demand now.

"It is always in demand, of course, but now, due to well-known circumstances, especially when the Russian economy is acquiring a fundamentally different quality, it is starting to develop according to a new model, which was recently mentioned in the message to the Federal Assembly," Putin said.

President Putin added that Russia is expected to see GDP growing in the second quarter of this year.

"We see how positive trends in the Russian economy are gaining momentum, and we also expect a significant increase in GDP in the second quarter of this year compared to the last year," Putin stressed.

The summer 2022 decline in Russian business activity was linked to the Western sanctions against Moscow, the president said, noting that the Russian economy has been on the rise since July 2022.

Vladimir Putin stated that Russia's foreign trade in 2022 climbed by more than 8% and amounted to $850 billion.

"In general, Russia's foreign trade in 2022 increased by 8.1% to $850 billion," he said.

Exports grew by 19.9% in 2022, while imports decreased by almost 11.7%, the head of state noted.

Inflation in Russia by the end of March will be lower than in European countries, which are waiting for the collapse in the Russian economy, Putin stressed. Inflation in Russia is expected to be about 4% by the end of March.

"To put that in context, of course, this [inflation in Russia in March] will be lower than in the eurozone countries, which are endlessly waiting for the collapse of the Russian economy," he said.

In April, inflation will reach the target, the head of state predicted.

In 2022, Western governments slapped sweeping sanctions on the Russian economy over Moscow's special military operation in Ukraine.

The Russian economy proved to be more resilient than Western governments had anticipated. For instance, the US-led West actively searched for ways to limit Moscow’s energy-related income, notably from oil and gas. The effort culminated with a $60 price ceiling imposed by G7 member states and Australia on December 5, 2022. To counter that, Russia simply pivoted and boosted hydrocarbons supplies to friendly countries not on board with the G7's price cap policy.