In a wide-ranging annual press conference held on Friday, Russian President Vladimir Putin addressed critical issues from the ongoing conflict in Ukraine and relations with NATO to the state of the Russian economy. The event, closely watched globally, saw Putin reiterate Moscow's stance on potential negotiations while firmly blaming Western nations for the current impasse.
On Ukraine: A Call for Talks and Security Guarantees
President Putin stated that Russia remains ready for a peaceful resolution to the conflict, but emphasized that the initiative now lies with the West. "The ball is entirely in the court of our Western opponents, primarily the leaders of the Kyiv regime, and in this case, first and foremost, their European sponsors," he declared. He referenced principles outlined in June 2024 at the Russian Foreign Ministry as the basis for any settlement.
Putin revealed that during a meeting with former US President Donald Trump in Anchorage, they had "practically agreed" to proposals for ending the war. He dismissed claims that Russia is rejecting peace efforts as "completely incorrect." On the possibility of elections in Ukraine, Putin made a surprising offer, stating Russia was ready to consider ways to ensure election security, including refraining from deep strikes on election day. He insisted that millions of Ukrainian citizens living in Russia must be allowed to vote.
NATO and European Security: Accusations of Deception
The Russian leader reserved strong criticism for NATO, framing the alliance's eastward expansion as the root cause of current tensions. "They said NATO wouldn't move eastwards even one inch. That's a direct quote... Western politicians created the current situation with their own hands," Putin asserted. He expressed Russia's desire for a "reliable security system" in Europe, built on fulfilled promises from Western partners.
When asked about the prospect of war with European countries, Putin responded dismissively. "Are we really planning to attack Europe? What kind of nonsense is this?" He claimed Russia is ready to cease hostilities immediately if its security interests are respected in the medium and long term.
Economic Resilience and Policy Decisions
Shifting to domestic affairs, Putin presented a picture of a managed and stable Russian economy despite external pressures. He reported that GDP growth is at 1%, describing this as a deliberate step linked to inflation targeting. He noted that inflation is likely to end the year at 5.7-5.8%, below the target of 6%.
On fiscal health, Putin highlighted that the federal budget deficit stands at 2.6% of GDP, with a projection of 1.6% for the next year. He pointed out that Russia's public debt remains "one of the lowest among developed economies." Real wage growth, though slower than last year, is expected to be around 4.5%.
He defended the government's decision to increase Value-Added Tax (VAT) as the "most appropriate, honest and transparent way" to achieve a balanced budget. Regarding the Central Bank's recent decision to cut the key interest rate by half a percentage point, Putin stressed the institution's independence, though he acknowledged expert criticism about the gap between the rate and actual inflation potentially dampening investment activity.
Putin also issued a stark warning regarding European efforts to seize frozen Russian assets, calling it "daylight robbery" that could severely undermine trust in the eurozone and the global financial order. He vowed to defend Russia's interests in courts worldwide.
The press conference concluded with Putin reaffirming Russia's strategic initiative on the battlefield in Ukraine, claiming his forces are advancing along the entire line of contact.
