The multipolar world order is strengthening, and this is an inevitable process, Russian President Vladimir Putin said during his address at the St. Petersburg International Economic Forum (SPIEF).
"The inherently ugly neo-colonial world system has ceased to exist, and the multipolar world order is being strengthened. This is an inevitable process," Putin stressed.
According to the president, one of the main indicators of this process taking its toll is the fact that an increasing number of countries are now being guided by their own interests, and don't give into pressure from the West. In this regard, he noted that Russia has significantly increased its trade with those countries that do not succumb to severe external pressure.
"With some such states, whose leaders often do not succumb to boorish external pressure, but are guided not by others, but by their own national interests, the volume of our mutual trade has increased not even by some tens of percent, but by many times," Putin said.
The president added that now these volumes continue to grow even further. In January-April, Russia’s foreign trade surplus has reached $22.6 billion, he said.
Putin further elaborated that about 90% of settlements with the Eurasian Economic Union (EEU) countries are made in rubles, and over 80% of settlements with China are in rubles and yuan.
"I would also point to a noticeable progress in the use of national currencies in foreign trade. This is a separate big topic. Today, about 90% of settlements with the countries of the Eurasian Economic Union are made in rubles. More than 80% of settlements with China are in rubles and yuan," the president said.
Apart from that, the Russian authorities are preparing new mechanisms for cross-border settlements. The president in particular stated that the country is going to significantly simplify the opening of a bank account for foreign companies.
New Global Economic Trends
According to the president, Russia began to turn to the markets of Asia, Latin America and Africa long before the situation in Ukraine, because the world's economic leaders are changing.
"Deep transformations are taking place in the world. After all, we began to reorient ourselves to the markets of Asian countries, to Africa, to Latin America not just yesterday. Long before the tragic events in Ukraine began. Long before. And why? But because the trends of the world economy are changing," Putin said.
He explained that along with partners and friends, Russia has foes that are used to gaining excess profits from their dominance and monopoly, and they do not need any competitors. These foes simply don't want other nations "to have an alternative to their planes, ships, medicines, banking systems, technologies and other goods and services."
The president also reiterated that those who say that Russia is becoming increasingly dependent on China are themselves dependent on Beijing.
"After all, the growth rate of trade between, say, China and the countries of the Eurozone is even greater than the growth rate of our trade relations with China. When I hear that ‘here, you will become dependent on China’, and you? … You've been [dependent] for a long time. You understand what's the matter," the president stated.
Putin on Russia's Economic Performance
In his address, Putin highlighted positive developments and prospects of Russia's economy. According to the president, the country's GDP growth by the end of 2023 may be about 2%, and in April it increased by 3.3%.
"I agree with those of our experts who believe that the growth [of GDP] will still be up to 1.5%, and maybe more — under 2%. This will help our country to keep its place among the leading economies of the world," Putin said during his address at SPIEF.
Moreover, inflation in Russia is now lower than in many Western countries and is close to its historical low, the Russian leader said, adding that it amounts to 2.9%. At the same time, Russia's unemployment rate is down to 3.3%, he stated, noting that it has never been so low before.
"We have maintained a responsible, balanced budgetary and monetary policy. Their effective combination made it possible to reach the minimum figures of unemployment, as well as inflation, which is now lower in Russia than in many Western countries — both in the eurozone and in other regions — and is close to the historical minimum, is 2.9%," the president said.
Apart from that, Putin pointed out that the minimum wage in Russia should grow in nominal terms at least twice by 2030, and starting from 2024 it will be increased by 18.5%. According to the president, this increase will be an additional incentive for the growth of wages in the country as a whole.
The president also touched upon the topic of the Russian energy sector, its performance and development prospects. He underlined that as of now, the trend of reducing oil and gas dependence is gaining momentum in Russia.
"The Russian part of the audience probably remembers and knows, we have always said: 'When will we get off the oil and gas needle?' Well, this trend is gradually gaining momentum," Putin said.
At the same time, the president added that in general, the Russian oil and gas market is in good condition and has promising opportunity development.
Russia's Agro-Industrial Complex Supplies Reach New Maximum
The president also mentioned developments in the country's agro-industrial complex, noting that Russian suppliers will update the record for wheat supplies to foreign markets this year.
"There are reasons to believe that this year our companies will take another step forward, update the record again," Putin said during his address.
For the past 10 years Russia has been consistently among the top five grain exporters, since 2016 it has been the world's largest supplier of wheat, and the country will actively participate in ensuring global food security and provide assistance to those in need, Putin added.
Kiev 'Has No Chances': Putin on Ukraine's Counteroffensive Attempts
The president also briefed the nation on the situation in Ukraine, highlighting that Kiev is using its strategic reserves to break through Russian defense lines during their counteroffensive.
"They use the so-called strategic reserves, which consist of several components: the first of them is designed to break through the defense, the second, in order to use troops to secure territories, to move the territory. They didn't achieve their goals in any of the sections, that's what matters," Putin said.
The president mentioned that Ukraine is making new counteroffensive attempts right now, including in Zaporozhye region, but Kiev "has no chances."
He added that Ukraine will soon stop using its equipment during Russia's special military operation, as Kiev is using primarily foreign equipment. Ukraine has already lost 186 tanks and 418 armored vehicles in its counteroffensive attempts and losses growing every day, Putin added.
"Soon Ukraine will stop using its own equipment at all, there is nothing left. Everything with which they fight, everything they use, is brought from the outside. You cannot win with that," Putin said.
The president noted that the Russian defense industry enterprises are working double and triple shifts, adding that production of weapons increased by 2.7 times, and "when it comes to the most needed equipment, [production] increased by 10 times."
Russian President Putin delivered his speech at the plenary session of the 26th edition of SPIEF, which is being held in St Petersburg from June 14 to 17. His Algerian counterpart Abdelmajid Tebboune, who is on an official visit to Russia, also addressed the forum participants. In his address, the Algerian president underscored that Russia has an important role in reducing the severity of global crises thanks to its policy and supplies of wheat to developing countries. Tebboune in particular addressed the Russian leader, saying that he is "the friend of the whole world."