(Reuters) – President Vladimir Putin stated Thursday that Russia had caused a world economic crisis, and a tsunami of inflation, by imposing the harshest sanctions on Russia in recent times in response to the conflict in Ukraine.

Putin’s february 24 order to conduct a “special military operations” in Ukraine led the United States, its allies and other countries, to place severe sanctions on Russia. The Kremlin Chief interpreted this as an act of economic war.

Putin stated that sanctions by the West were creating a global crisis which could whiplash the European Union and cause famine in some of the most poor countries.

Putin stated that the West’s elites are responsible for the situation and were willing to take the loss of other countries to preserve their dominance. He spoke at an economic meeting.

Putin maintained that Russia could withstand the pressure.

Russia is confidently dealing with external threats thanks to its responsible macroeconomic policy of the recent years as well as systemic decisions to increase economic sovereignty, technology and food security.

Russia is one of the largest producers of natural resources in the world. The West has attempted to isolate Russia economically, causing the global economy to spiral into unknown waters.

RUSSIA WILL SUVIVIVE

According to a document from Russia’s Economy Ministry, Russia’s GDP is expected to shrink by over 12% by 2022. This would be the largest drop in the country’s gross domestic product in the decades following 1991 Soviet Union collapse.

Putin used the example of Russia’s strong performance during sanctions to point out the strength and success of the rouble, stating that this was Russia’s best-performing currency.

On Thursday, the rouble strengthened to 65 against the US dollar, an increase that was not seen since early 2020. This is due to capital controls Moscow had to place to protect the economy following the deployment of thousands of Russian troops to Ukraine on February 24.

Putin stated that Russia was one of the largest exporters of wheat in the world and would be able to harvest a record-breaking crop this year.

Putin said to his ministers that he wants to talk about steps necessary for economic growth and an increase of real incomes. Russia’s inflation is poised to reach its highest level since 1999.

Maxim Reshetnikov (Economy Minister) agreed with Putin, stating that the economy is showing resilience and adding that the labour markets were stable and that inflation has started slowing.

According to him, the biggest challenges for the Russian economy are disruptions in supply chain and significant decreases in imports.