Report Wire - ‘Politically motivated’ Western sanctions on Russia have prompted international financial challenges: Putin

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‘Politically motivated’ Western sanctions on Russia have prompted international financial challenges: Putin

3 min read
Press Trust of India

Russian President Vladimir Putin on Wednesday mentioned the “politically motivated” Western sanctions on his nation have prompted international financial challenges like lower in enterprise exercise, a spike in unemployment, a scarcity of uncooked supplies and difficulties in guaranteeing international meals safety.

In his tackle to a enterprise convention of the BRICS hosted by Chinese President Xi Jinping, Putin additionally mentioned that Russia was within the technique of rerouting its commerce and oil exports in direction of international locations from the grouping which includes Brazil, Russia, India, China and South Africa.

“New politically motivated sanctions are imposed again and again, the mechanisms of putting pressure on competition are being reinforced,” he was quoted as saying by the state-run TASS information company.

“A deliberate breakdown of cooperation ties is taking place, transport and logistics chains are collapsing,” he mentioned. “All this is contrary to common sense and elementary economic logic, is to the detriment of the interests of business on a global scale, and negatively affects the well-being of the population, essentially, of all countries.”

“As a result, problems in the global economy are becoming chronic,” he said.

“There is a lower in enterprise exercise, a rise in unemployment, a scarcity of uncooked supplies and elements, difficulties in guaranteeing international meals safety are being exacerbated, costs for grain crops and different primary agricultural merchandise are pushed up,” Putin said without referring to Russia’s invasion of Ukraine.

Putin ordered a “particular army operation” against Ukraine on February 24. The US-led Western nations have imposed crippling sanctions on Russia for its invasion of Ukraine.

Ukraine is one of the world’s top grain producers along with Russia, but has been unable to export to global markets because of a blockade of its Black Sea ports.

The BRICS countries, Putin said, are developing business in difficult conditions.

“Entrepreneurs in our international locations are having to construct their enterprise in tough circumstances when Western companions neglect the essential ideas of a market economic system, free commerce, the inviolability of personal property, pursue an basically irresponsible macroeconomic course, together with the launch of a printing press, uncontrolled emission and the buildup of unsecured money owed,” he said.

Noting that despite all problems and difficulties, BRICS businesses have been “constantly enhancing mutually useful ties within the areas of commerce, finance, and funding”, Putin mentioned that within the first three months of 2022, commerce between Russia and the BRICS international locations elevated by 38 per cent – and reached USD 45 billion.

“Contacts between Russian business circles and the business community of the BRICS countries have intensified. For example, negotiations are underway to open Indian chain stores in Russia, increase the share of Chinese cars, equipment, and hardware on our market. In turn, Russia’s presence in the BRICS countries is growing. There has been a noticeable increase in the exports of Russian oil to China and India,” he mentioned.

Putin additionally mentioned that the Russian monetary messaging system is open to connecting banks from the BRICS international locations.

“Together with BRICS partners, we are developing reliable alternative mechanisms for international settlements. The Russian Financial Messaging System is open to connection with the banks of the BRICS countries. The Russian MIR payment system is expanding its presence. We are exploring the possibility of creating an international reserve currency based on the basket of BRICS currencies,” the Russian leader said.

“I wish to stress that the Russian technique doesn’t change: whereas strengthening our financial, technological and scientific potential, we’re able to overtly work with all truthful companions on ideas of respect to pursuits of one another, unconditional supremacy of worldwide legislation, and equality of nations and peoples,” he harassed.