Russia continues to play a crucial role in international trade, despite facing economic penalties.
Despite facing numerous Western sanctions, Russia continues to play an essential role in the global trade market, as per Kremlin head Vladimir Putin. In spite of the challenges and the "unlawful sanctions" imposed by the West, Russia is progressing in its logistics and strengthening its international partnerships, as revealed at the 27th St. Petersburg International Economic Forum (SPIEF).
The nation holds a position among the leading economic entities - even surpassing Germany - when considering purchasing power, Putin mentioned. The West has penalized Russia with unprecedented sanctions packages in response to Putin's actions against Ukraine, an ongoing issue for over two years.
Trade with the Middle East has doubled on its own. Approximately 75% of Russia's foreign trade is now executed with friendly nations, Putin pointed out. Following Western trade bans in multiple regions, Russia has predominantly shifted its economic focus towards China, India, Africa, and Latin America.
Putin advocated for an extension in technological cooperation during a speech to hundreds of guests and guaranteed attractive growth prospects for foreign investors. The Russian president also commented on the continued development of an autonomous payment system. This system should be detached from political influence and aid in conducting transactions between nations. Russia has been largely shut out of the Western system and has consequently created its own credit card system.
Although economic relations are minimal, many businessmen from Western countries attend the forum, including those from the US and EU. Western analysts also highlight a relatively resilient economic status in Russia, which has had to weather drastic financial sanctions and trade embargoes. However, much of the expansion and positive consumer sentiment can be attributed to the highly inflated war economy.
Prior to the start of the economic forum, Russian politicians and businessmen stressed that the country is preparing for a protracted military conflict. The war economy could potentially shape Russia's economic landscape for years, as discussed at the forum's events.
