"'Putin Inflation' Is Nonsense" Putin Pours Criticism on the West

Speech at the St. Petersburg International Economic Forum (SPIEF)
"US Currency Overissuance Causes Sharp Rise in Global Grain Prices"
"No Opposition to Ukraine's EU Membership"

Russian President Vladimir Putin is delivering a speech at a meeting with automobile industry business leaders held as a side event of the St. Petersburg International Economic Forum (SPIEF) on the 16th (local time).
[Image source=Yonhap News]

[Asia Economy Intern Reporter Kim Nayeon] Russian President Vladimir Putin denied any connection between Russia's invasion of Ukraine and the recent global inflation crisis during the St. Petersburg International Economic Forum (SPIEF) held in Saint Petersburg, Russia, while intensifying criticism against the West.

According to foreign media such as CNN and The Guardian, President Putin delivered a speech lasting over an hour on the 17th (local time), accusing the United States of blaming Russia for all the West's problems. He mentioned inflation, food, and energy crises, stating, "The Russian military operation in the Donbas region of eastern Ukraine has nothing to do with these issues."

President Putin also dismissed the West's claims of "Putin inflation" as nonsense, asserting, "Russia is not blocking Ukraine's grain exports."

He pointed out, "Over the past two years, the money supply in the United States has increased by 38%, and in the EU by 20%," adding, "The West has sucked up goods from poor countries like a vacuum cleaner." He particularly criticized the recent surge in international grain prices, stating that Russia is not responsible and that the problem lies in the excessive money printing by the United States.

He continued, "The decision to carry out the special military operation amid crises and threats against Russia was inevitable. It was a difficult decision but necessary and unavoidable," and said, "The West not only tried to implement an 'anti-Russia' scenario but also actively pursued military occupation of Ukrainian territory, pouring in their weapons and military advisers."

During the discussion following his speech, he also responded to questions about NATO expansion by stating, "The guarantee of Russia's security lies only in 'army and navy'." Regarding Ukraine's EU membership, he expressed no opposition.

He said, "Unlike NATO, the EU is not a military organization or political bloc, so we do not oppose Ukraine's membership at all," adding, "Whether to join an economic cooperation body is a sovereign decision of each country."

Furthermore, President Putin referred to Russia's involvement in the Ukraine war, which is approaching its fourth month, as an unavoidable intervention in the conflict and described it as "a decision of a sovereign state with unconditional rights."

He argued that the special military operation was launched inevitably to protect Russians and Russian-speaking residents living in the Donbas region of eastern Ukraine who were being discriminated against by Ukrainian authorities.

Meanwhile, Russian officials attending the meeting self-assessed that despite sanctions, their country's economy is performing better than initially expected.

The United States, the European Union (EU), and others have imposed sanctions such as bans on crude oil imports to hold Russia accountable for its invasion of Ukraine.

Nevertheless, Russia is reportedly benefiting more than before due to the sharp rise in energy prices. The price of Brent crude oil from the UK North Sea started this year below $80 per barrel but surged over 50% to $123 on the day.

As a result, Russia's revenue from energy exports has actually increased compared to before the Ukraine invasion. According to the International Energy Agency (IEA), Russia's crude oil export revenue last month was $20 billion (25 trillion won) per month, a 50% increase from the beginning of the year.

Major importers such as India and China continue to import Russian crude oil despite Western sanctions. Last month, India's purchases of Russian crude oil more than doubled compared to April. Daily imports exceeded 840,000 barrels, setting a record high.

A significant portion of Russia's energy export revenue paradoxically came from the EU. This is attributed to delays in the EU's agreement on banning Russian crude oil imports. The market expects that for member states to fully agree on sanctions and see their effects, it will likely be by the end of the year.

About 45% of the natural gas imported by the EU last year was from Russia. Special Envoy Hawkstein stated that the EU is being assisted in reducing its energy dependence on Russia and diversifying liquefied natural gas (LNG) suppliers from the United States, Qatar, and Australia.

This content was produced with the assistance of AI translation services.