Putin assures that Russia is becoming less and less dependent on oil and gas revenues

“We always say that we want to decouple from gas and oil revenues. Little by little, this trend is accelerating,” Putin said at the plenary session of the St. Petersburg Economic Forum, which is taking place under the motto “Sovereign development is the foundation of a just world”.

The Russian head of state explained that between January and May, “non-dependent” hydrocarbon revenues rose 9.1% more than expected and that the rate was 28.5% in May.

“It is an important indicator that the real estate sector of the economy, manufacturing sectors, trade and services are gaining speed,” he stressed.

Putin said Russia’s public finances are “generally balanced” while admitting that there is currently “a small deficit” due to prepayments.

“We did it on purpose. It is true that we needed extra money to guarantee our security and defense and to acquire weapons. We have to do it to ensure the sovereignty of our country. It is a reasonable process,” he argued.

According to the Russian Ministry of Finance, in the first four months of 2023, the country exceeded the budget deficit forecast for the entire fiscal year, leaving a gap of 3.4 billion rubles (40,979 million euros), mainly due to a decline in 52.3% of the oil price. and gas revenues.

Despite this, Russia tentatively maintains its forecast that the deficit will reach 2% in 2023.

“The stable macroeconomic situation has become our competitive advantage,” Putin noted, insisting that Russia’s gross domestic product (GDP) will grow between 1.5% and 2% this year, as predicted by the European Central Bank ( ECB).

“This allows our country to maintain its place in the list of the six largest economies in the world,” he stressed, adding that GDP increased by 3.3% in April compared to the same month last year.

The Russian economy contracted by 1.8% in the first quarter of this year compared to the same period in 2022.

Putin also stressed that Russian inflation is “lower than that of many eurozone countries”, close to the historic minimum, at 2.9%, and that unemployment is at 3.3%, a figure “never seen in history”. of the country”. .