The White House reacted angrily to Russian President Vladimir Putin’s description of international sanctions placed on Russia following its unjustified invasion of Ukraine as a threat to the world.
Putin also stated that the United States is willing to sacrifice Europe, which is facing a cost-of-living problem as oil costs rise as the war continues, in order to maintain a global “dictatorship.
The White House reacted angrily to Russian President Vladimir Putin’s broadside at the United States and the Western world.
Putin said that international sanctions placed on Russia as a result of its unjustified invasion of Ukraine presented a danger to the world. He went on to say that the US was willing to sacrifice Europe, which is facing a cost-of-living crisis as oil prices rise as the conflict continues, in order to maintain its global “dictatorship.”
Putin attacked the collective West at the Eastern Economic Forum in Vladivostok on Wednesday, singling out the United States to blame for the economic agony that sanctions on Russia are bringing Europe and beyond as global energy and food prices increase.
In an emailed statement, a State Department spokesman told CNBC that “sanctions and export controls are working, and President Putin is attempting to convince the world differently.”
Despite President Putin’s comments at the Eastern Economic Forum, Russia is paying a high price for his full-scale war on Ukraine, which has resulted in rising costs – tens of thousands of Russian soldiers killed, 14 million Ukrainian citizens forced to flee their homes, historic cities razed – all because Putin is determined to conquer another country,” they added.
According to a State Department spokeswoman, Russia’s policymakers, including its finance minister, have admitted that sanctions have caused major problems for the country. “Russia’s economy is vulnerable to a break from the global economy and will almost certainly experience a persistent drop in economic activity.” Putin’s war is expected to wipe out a significant portion of Russia’s economic gains during the last 15 years.
The Russian government is being compelled to spend more and more to support its economy, according to the spokesman, who added that official Russian sources estimate the country’s budget deficit at more than $15 billion in July alone.
Putin stated on Wednesday that Russia would have a budget surplus this year, but that growth would be hampered and GDP would decrease by “about 2% or a bit more.”
As winter approaches, Russia’s central bank expects the economy to fall further (by 7%) in the third quarter, following a 4.3% drop in the second quarter, according to Reuters, citing a central bank research. The bank anticipates that the economy will begin to revive in the second half of 2023. Annual inflation in July was 15.1%, higher than the EU rate of 9.8% in the same month.