Putin says Russia is increasingly dependent on oil and gas revenues

“AndWe always say that we want to separate from the revenues of gas and oil. Little by little, this trend is accelerating,” Putin declared at the plenary session of the St. Petersburg Economic Forum, which is taking place under the slogan “Sovereign development is the foundation of a just world.”

The Russian head of state explained that between January and May, revenues not dependent on hydrocarbons increased by 9.1% more than expected, and that in May this percentage amounted to 28.5%.

He stressed that it is “an important indicator that the real estate sector in the economy and the manufacturing, trade and services sectors are gaining speed.”

Putin said that Russia’s public finances are “generally in balance”, while acknowledging that there is currently a “small deficit” due to advance payments.

“We did this deliberately. It is true that we need additional funds to ensure our security and defense and to obtain weapons. We must do this to ensure the sovereignty of our country. It is a reasonable process,” he said.

According to the Russian Ministry of Finance, in the first four months of 2023, the country exceeded the budget deficit forecast for the entire fiscal year, accumulating a gap of 3.4 billion rubles (40,979 million euros), mainly due to a 52.3% drop in oil. and gas revenues.

Despite this, Russia maintains, for the time being, its forecast that the deficit will be 2% in 2023.

“A stable macroeconomic situation has become our competitive advantage,” Putin noted, noting that Russia’s GDP will rise between 1.5% and 2% this year, as predicted by the European Central Bank (ECB).

“This will allow our country to maintain its position in the list of the six largest economies in the world,” he stressed, adding that in April, GDP increased by 3.3% compared to the same month last year.

The Russian economy shrank by 1.8% in the first quarter of this year compared to the same period in 2022.

Putin also stressed that Russia’s inflation is “lower than that of many eurozone countries,” approaching a historic low, at 2.9%, and that the unemployment rate is 3.3%, a figure “unprecedented in the country’s history.” .

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