The Russian president highlighted economic resilience and global shifts at VTB’s annual event
Russian President Vladimir Putin struck a confident tone during his appearance at the 15th VTB Russia Calling! Investment Forum in Moscow on Wednesday, declaring that Western efforts to undermine the Russian economy had failed.
Addressing business leaders and investors from around the world, Putin praised his country’s strong economic performance, criticized Western policies, and championed closer ties with the East and Global South.
The forum, held over two days, focused on ‘The Future of Capital and the Capital of the Future’. Putin’s speech and subsequent Q&A session covered a wide range of topics, from inflation and cryptocurrencies to Russia’s trade relations with Africa and Asia.
Here are the key takeaways from Putin’s address:
East is best
The president dismissed suggestions that Russia’s pivot to the East was a reaction to Western sanctions, asserting that the country’s focus on Asia and the Global South had been a strategic decision long in the making.
“We are naturally guided toward places showing economic growth with a growing number of partners who are not looking over their shoulders to ensure compliance with someone barking orders from the outside,” Putin said. He pointed to countries such as Ethiopia and Bangladesh, which have seen GDP growth rates exceeding 100% over the collective past decade, as examples of the dynamic opportunities in these regions.
He criticized what he described as “smug attitudes” and “snobbery” in the West, claiming they have blinded Western Europe and the US to the changes reshaping the global economy.
Russia’s economic growth massively outperforming Eurozone
Putin compared Russia’s economic success to that of euro currency members, noting that the former’s GDP grew by 4.1% in the first ten months of 2024, while the Eurozone is expected to grow by just 1%. He also highlighted the 8.1% growth in Russia’s manufacturing sector, particularly in automotive and mechanical engineering.
“In Germany, manufacturing is shrinking by 4.6%, but here in Russia, it is growing by 4.4%, with significant achievements in key industries,” Putin said. He argued that this indicates that Russia has adapted and thrived despite external pressures.
Western plot to damage Russian economy has failed
Putin accused Western nations of attempting to inflict a “strategic defeat” on Moscow through sanctions and economic pressure, but claimed these efforts had backfired. “They sought to destabilize our industries, create shortages, and drive up unemployment,” he stated. “But instead, Russia’s economy has not only recovered but is undergoing qualitative structural changes. This is the most important outcome of the past two or three years.”
The president attributed Russia’s resilience to a combination of new partnerships, domestic manufacturing, and effective fiscal management, noting: “We have achieved record-low unemployment at 2.3%, compared to 7.6% in Italy, 11% in Greece, and even 8% in Brazil.”
Digital Ruble rollout on track
Putin highlighted the success of Russia’s digital ruble pilot program, which involves over 9,000 citizens and 1,200 companies. He announced that the digital ruble would be integrated into Russia’s federal budget system by 2025, with a nationwide rollout planned by mid-year.
“Digital currencies reduce transaction costs and increase the security of financial systems,” Putin explained, adding that the digital ruble will be part of a broader effort to modernize Russia’s financial infrastructure. “This is a significant competitive advantage for our economy in the global context,” he added.
Nobody can ban Bitcoin
Touching on digital currencies, Putin declared that decentralized technologies such as Bitcoin are immune to government bans.
“Who can ban Bitcoin? No one,” Putin said. “The world is evolving toward digital and secure settlement mechanisms, and this is an inevitable process that no sanctions or restrictions can halt.”
He also revealed that Russia is working with its BRICS partners to develop a digital investment platform to facilitate secure and inflation-proof financial transactions.
Corridor to the Indian Ocean
Putin emphasized the importance of the North-South Corridor, a trade route linking Russia, Iran, and India. He described the project as essential for reducing reliance on Western-controlled trade routes and ensuring economic security.
“This corridor will provide seamless movement of goods from St. Petersburg to the Indian Ocean,” Putin said. He confirmed that construction of the Rasht-Astara railway in Iran, a critical segment of the route, is progressing, despite technical and logistical challenges. “We are determined to complete this project because it opens up tremendous opportunities for trade and minimizes geopolitical risks,” he added.
Most Western firms stayed in Russia
Despite public claims of mass exits, Putin said that the majority of Western companies have remained operational in Russia.
“We never pushed anyone out or banned anyone,” the Russian leader insisted. “It was their decision to leave, and now many of their niches have been filled by domestic or non-Western brands.”
He warned that firms seeking to return may find it difficult to reclaim their market positions, noting the rapid rise of import substitution and new competitors.
Inflation is a tax on the poor
Putin described inflation as particularly harmful to low-income citizens, who often lack savings to offset rising prices.
“Inflation is a tax on the poor,” he stated. “We must focus on increasing production and supply to stabilize prices and ease this burden on our most vulnerable citizens.”
Putin acknowledged that Russia’s inflation rate remains high at 8.8%, but expressed confidence that coordinated efforts between the government and the central bank would bring it under control.
Africa and Russia close in spirit
Putin reaffirmed Russia’s commitment to stronger ties with Africa, calling the continent a “reliable partner” and praising its leaders for prioritizing sovereignty and mutual respect.
“Nothing has ever divided us from the peoples of Africa,” Putin said. “Our relations are built on shared values of independence and courage in the face of external pressures.”
He announced plans for a special fund to support partnerships and highlighted growing trade volumes, which reached $24.5 billion this year.
