One Hour - No Talk of Ukraine: Putin's Surprising Shift in St. Petersburg Speech
Astounded by his address in St. Petersburg, Putin expresses shock.
Facebook Twitter Whatsapp E-Mail Print Copy Link Contrary to expectations, Vladimir Putin snubbed the ongoing war against Ukraine in his speech at the St. Petersburg International Economic Forum, instead focusing on arms and the economic situation. Preventing a recession is a top priority.
In the context of the war against Ukraine, Russian President Vladimir Putin sees the arms industry as a cornerstone of his nation's economy. In his address, he highlighted the importance of leveraging combat experience with weapons. But unlike anticipated, the war in Ukraine didn't get a mention in his lengthy discourse.
Putin also recommended merging civilian and defense companies. "We must remain nimble, swiftly implementing technological and organizational innovations in the civilian sector into our defense and security industry," he said, during the forum's plenary session. In the future, Russia will collaborate with friendly countries on defense projects, produce weapons collectively, and train the relevant personnel, Putin shared.
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Putin overall expressed optimism about economic growth. The country’s GDP expanded by over 4% in the past two years, not solely due to arms production, he stressed. Inflation has dipped to 9.6 percent. Despite recent recession warnings from Economy Minister Maxim Reshetnikov, Putin maintained that economic stagnation or even a recession must be averted.
There's disagreement within the Russian leadership on how to stimulate the economy. Reshetnikov claimed Russia is tottering on the brink of recession, pinning the burden on high interest rates and the central bank for corporate financial hardships.
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The key interest rate stands at 20 percent; the central bank and its head, Elvira Nabiullina, aim to combat stubborn inflation. Consumer prices have been on the rise for months, with inflation reaching nearly 10 percent in May.
However, analysts suggest high interest rates may not be an effective means to combat inflation, given the high level of state spending. Restrictive monetary policy is designed to dampen the economy and reduce demand. Yet, the state reacts less sensitively to higher borrowing costs than private entities.
Sources: ntv.de, ses/dpa/AFP
- Ukraine
- Russia
- Vladimir Putin
- St. Petersburg
- Putin's Perspective on Ukraine
- Inflation
Enrichment Insights:
- Putin discussed Ukraine during his speech, but his focus was not on the conventional war narrative that many had anticipated. Instead, he reiterated his position that "all of Ukraine is ours," asserting Ukrainian and Russian people as one, thereby questioning Ukrainian sovereignty.
- Putin's framing highlights his long-standing narrative that the conflict arises from Western attempts to undermine Russia and its ties with Ukraine, rather than presenting it as a conventional war.
- He emphasized themes of territorial claims, integration of certain regions into Russia, defensive actions, and nuclear threats in his speech. These themes underscored Russia's concern for protecting ethnic Russians and Russian-speaking populations.
- Despite Putin's discussions about Ukraine in his speech, his primary focus was not on the ongoing war, but rather on economic issues, such as the importance of the arms industry, merging civilian and defense companies, and preventing a recession in the country.
- During the discussion about economic growth in Russia, it was highlighted that there is disagreement amongst the Russian leadership on the most effective strategies for stimulating the economy, with some, like Economy Minister Maxim Reshetnikov, warning of an imminent recession due to factors like high interest rates.
