Putin praises Russian economic performance in St Petersburg speech

President says economy is 'gaining momentum and strength' despite Ukraine war

Russian President Vladimir Putin speaks at the St Petersburg International Economic Forum on Friday. AFP

Russian President Vladimir Putin on Friday declared his country's economy to be in sound health as he expressed confidence that the country would survive the fallout from its 16-month military campaign in Ukraine.

Speaking at the St Petersburg International Economic Forum, Mr Putin announced that Russia's energy sector was finding new buyers and that "positive macroeconomic trends are gaining momentum and strength".

Quoting a forecast by the International Monetary Fund that Russia's economy will grow by 0.7 per cent this year, he predicted it could do better with growth of 1.5 per cent or more.

"This will allow our country to keep its place among the leading economies of the world," he said.

Russia is under sanctions because of its invasion of Ukraine. Its economy shrank 2.1 per cent in 2022.

In remarks that also touched on developments on the Ukrainian front line, Mr Putin said:

· Ukraine would soon run out of its own supplies of military equipment, making it totally reliant on hardware provided by the West. He said Ukrainian forces had failed to make progress in their counter-offensive and had "no chance" against Russia's troops, who could "destroy any building" in Kyiv if they chose to

· If Nato fighter jets were used in the conflict and stationed elsewhere, Russia would have to consider how and where to hit them. Mr Putin Russia has stationed nuclear weapons in Belarus but has "no need" to use them

· Moscow has "never closed the door" to a peace dialogue but there was almost no contact between the US and Russia at present.

Mr Putin also had a strong words for Ukrainian President Volodymyr Zelenskyy who he said was described as disgrace by his own people.

Vladmir Putin said Russia's economy is on course to grow this year. AP

Russia's annual budget deficit is $42 billion, the result of increased military spending and falling energy revenue as a result of the war.

Mr Putin said extra Russian spending on arms was "needed to strengthen defence and security".

"We were forced to do this to protect our country's sovereignty," he said.

He acknowledged that oil and gas revenues were down after G7 countries led a push to curb the Kremlin's income.

But he said non-oil and gas revenues were on the rise thanks to growth in manufacturing and services.

Western energy markets "are being replaced with others and I don’t see any catastrophe playing out here", he said.

Mr Putin said companies that cut ties with Russia because of the war could return because "we are not closing the doors to anyone".

He said Russian entrepreneurs were now "occupying vacated production facilities and sites in shopping centres".

President Sheikh Mohamed met Mr Putin in St Petersburg on Friday and said the UAE was open to helping ease tensions over Ukraine.

Sheikh Mohamed was leading the country's delegation to the economic forum.