Russian President Vladimir Putin gestures while speaking at the St. Petersburg International Economic Forum (SPIEF) in St. Petersburg on June 7, 2024.
Anton Vaganov | Afp | getty images
Russian President Vladimir Putin said Friday that nearly 40% of Russia’s trade turnover is now in rubles, with the share in the dollar, euro and other unfriendly Western currencies shrinking.
Putin told the St. Petersburg International Economic Forum (SPIEF) that “Russia-friendly” countries deserve special attention because they will define the future of the global economy and already account for three-quarters of our economy. “Trading volume.”
He added that Russia would seek to increase the share of payments made in the currencies of BRICS countries, referring to the economic bloc of emerging markets that includes Brazil, Russia, India, China and South Africa.
Putin said Russian export payments made up of “so-called ‘toxic’ currencies of unfriendly countries” had halved compared to last year.
“As a result, the share of the ruble in import and export transactions has increased and is now almost 40%,” President Putin said. That’s up from about 30% a year ago and higher than the 15% seen before the war, according to the report.
The Russian president has laid out detailed plans for a major overhaul of the country’s financial markets, including plans to double the value of Russia’s stock market within 10 years, reduce imports and increase investment in fixed assets.
His comments come as the Kremlin uses SPIEF to forge new relationships with countries in Asia, Latin America and Africa.
The West sought to block Russia’s $2 trillion economy in response to Moscow’s full-scale invasion of Ukraine in February 2022. But despite several rounds of international sanctions, Russia’s economy is expected to grow faster than all developed countries this year.
The International Monetary Fund (IMF) predicted Russia’s growth rate in 2024 to be 3.2% in its World Economic Outlook last April. This exceeded the growth rate forecast for the United States (2.7%) of 2.7%. Germany, France and the UK are expected to record even lower economic growth rates of less than 1%.
Russia says Western sanctions on its critical industries have made the country more self-sufficient and that private consumption and domestic investment remain resilient. Continued exports of oil and raw materials to countries such as India and China, alleged sanctions evasion, and high oil prices have enabled Moscow to maintain robust oil export revenues.
ukraine war
Fighting has intensified in Ukraine since Russia launched a full-scale invasion two years ago, and Moscow forces have made tactical advances in northern and northeastern Ukraine in recent weeks.
Western leaders marked the 80th anniversary of D-Day on Thursday with impassioned slogans for Ukraine’s continued support. At international commemorations of D-Day, US President Joe Biden said giving in to Russian aggression was “simply unthinkable” and pledged not to cut off US support for the Eastern European country.
French President Emmanuel Macron also praised the courage of Ukrainian troops who fought alongside Biden against Russian forces, adding, “We are here and we will not back down.”
Ukrainian President Volodymyr Zelenskiy, who attended the event at Omaha Beach, said on social media that the event served as a reminder of “the courage and determination shown in the pursuit of freedom and democracy.”
“The allies defended European freedoms then, and the Ukrainian people do so now. Unity won then, and true unity can win today,” Zelenskyy added.
Earlier this week, Putin said Russia could supply long-range weapons to unspecified actors for attacks against the West, in response to the lifting of some Western restrictions on Ukraine using weapons to attack military targets inside Russia. It is said that
— CNBC’s Holly Ellyatt contributed to this report.
