Putin Claims Russia's Economic Storm is Over

Russian President Vladimir Putin announced that the hardest part of Russia's economic woes is likely over. At a forum in Sochi, he stressed the importance of boosting economic stability, controlling inflation, and fostering growth, while acknowledging the impact of increased VAT on growth but justified its necessity for balancing interest rates.

Russian President Vladimir Putin declared on Thursday that Russia has likely surpassed the most challenging phase of its economic difficulties. Addressing the Valdai Discussion Club in Sochi, he highlighted the urgent need to enhance economic stability, curb inflation, and sustain economic growth.

Putin acknowledged the government's decision to increase the value-added tax (VAT) rate, conceding its potential impact on economic expansion. However, he justified this move as essential for enabling the Central Bank to stabilize key interest rate decisions.

While the economic landscape remains cautious, Putin's remarks signal a shift toward longer-term recovery strategies for the Russian economy.

(With inputs from agencies.)