Putin: West Trying to Sideline Russia 12/18 06:38
Russian President Vladimir Putin vowed Thursday to fix Russia's economic
woes within two years, voicing confidence that the plummeting ruble will
recover and promising to diversify Russia's gas-dependent economy.
MOSCOW (AP) -- Russian President Vladimir Putin vowed Thursday to fix
Russia's economic woes within two years, voicing confidence that the plummeting
ruble will recover and promising to diversify Russia's gas-dependent economy.
Speaking with strong emotion and looking confident, Putin also displayed a
defiant stance toward the West, which he insisted was still trying to destroy
Putin acknowledged that Western economic sanctions over Russia's actions in
Ukraine was just one factor behind Russia's economic crisis, accounting for
roughly 25 to 30 percent of the ruble's troubles. He said a key reason for the
currency's recent fall was the nation's failure to ease its overwhelming
dependence on oil and gas exports.
As Putin spoke, the Russian currency was trading at 61 rubles to the dollar.
That was slightly lower than last night but up 12 percent from the historic low
of 80 to the dollar that it hit earlier this week. Russia's benchmark MICEX
index rallied by 5.5 percent by midday Thursday.
The Russian leader sought to soothe market fears that the government could
use administrative controls, such as obliging exporters to sell their currency
earnings, to help stabilize the ruble.
Putin said the nation's currency reserves are sufficient to keep the economy
in stable condition, adding that the Central Bank shouldn't aimlessly "burn"
its $419 billion in reserves.
"Our economy will overcome the current situation. How much time will be
needed for that? Under the most unfavorable circumstances I think it will take
about two years," he said.
Putin struck a defiant note against America and the European Union, saying
that sanctions slapped against Russia after it seized the Black Sea region of
Crimea in March were part of a historical campaign to weaken Russia. He accused
the West of trying to infringe on Russia's sovereignty, adding that the
Ukrainian crisis was just a pretext for Western action.
"Sometimes I think, maybe they'll let the bear eat berries and honey in the
forest, maybe they will leave it in peace," said Putin, referring to Russia's
famed symbol. "They will not. Because they will always try to put him on a
chain, and as soon as they succeed in doing so they tear out his fangs and his
He said by fangs and claws he meant Russia's nuclear weapons, adding that
the West wants to weaken Russia to win control over its rich natural resources.
"Once they've taken out his claws and his fangs, then the bear is no longer
necessary. He'll become a stuffed animal," he said. "The issue is not Crimea,
the issue is that we are protecting our sovereignty and our right to exist."
Putin defended Russia's increased military activities, including Baltic
flights that NATO said put civilian flights at risk, as a necessary response to
what he described as aggressive Western action.
Despite his anti-Western rhetoric, Putin urged a political solution for the
crisis in Ukraine, where pro-Russian insurgents have been battling Ukrainian
government troops since April, leaving 4,700 people dead.
He said Ukraine must remain one political entity, meaning that its
pro-Russian, rebellious eastern regions should not break away. He also
suggested the Ukrainian government and rebels in eastern Ukraine should conduct
a quick "all for all" prisoners swap before Christmas.
Putin said he feels sure that Ukrainian President Petro Poroshenko sincerely
wants a peaceful solution to the crisis but other forces in Ukraine don't. He
urged the Ukrainian government to fulfill its end of a peace deal reached in
September and grant amnesty to the rebels and offer broad rights to eastern
Putin also held out hope for normalizing ties with the West, saying that
Russia still hopes to expand its gas supplies to southern Europe using a
prospective gas hub on Turkey's border with Greece.
Turning to the ruble's collapse, he said the government should work with
exporters to help stabilize the plummeting currency, but added that it
shouldn't be done through formal orders.
He said he had talked to the heads of some of Russia's major companies to
encourage them to sell more rubles --- and said one promised to sell $3 billion
to help stabilize the currency.
But he rejected proposals to fix the ruble rate, saying it would not achieve
positive results --- a statement that likely will help soothe market fears the
government could use administrative means to stabilize the ruble --- measures
that could add to panic on the market.
Putin said the government and the Central Bank are generally working
correctly to deal with the current economic woes, albeit some of their action
"The current situation has been provoked by external factors, but it's worth
noting that we haven't done what we planned to do to diversify our economy,"
Putin toned down his accusations against his foes, who he has branded as
agents for the West bent on undermining Russia.
Hours before the press conference, a Russian tycoon placed under house
arrest in September, Vladimir Yevtushenkov, was released. Shares in Sistema, a
company that Yevtushenkov controls and manages, surged by more than 30 percent
in the early hours of trading on Moscow's MICEX stock exchange.
One of Sistema's most lucrative assets --- the oil company Bashneft --- was
transferred to the government this month. Yevtushenkov in September was charged
with money-laundering in relation to Bashneft.