Putin warns large businesses of ongoing complications from sanctions

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September 22 , 2017 – Fort Russ News – 

KtovKurse  – translated by Inessa Sinchougova

Russian President Vladimir Putin invited 50 heads and owners of the largest Russian companies to talk about the future of the country’s economy.

The key topic of the meeting was the warning that Russia will have to live under sanctions for a long time and, probably, sanctions will also be expanded.

In addition, the companies talked about the current sanctions regime, which left state-owned companies and banks without cheap loans in a foreign currency, and also forced them to extinguish foreign debt. The question was raised as to how to “live on” if the sanctions were toughened more.

Putin promised the companies that if the sanctions are increased, the government will support the business, but what kind of tightening is expected is not specified.

Experts say that the only real risk is the expansion of sanctions on Russian debt with the prohibition of buying federal loan bonds for foreign banks, which will certainly cause an outflow of funds from the Russian market and pushes the ruble to a new decline.

Sources said that during the meeting Putin did not touch upon the situation in the banking sector, despite the fact that in the last two months the three largest private banks, Otkrytie, Binbank and Yugra, failed.

Putin said that Russia allegedly emerged from the recession, referring to Rosstat data – GDP grew about 2.5% in the second quarter, investments grew by 6.3%, and inflation slowed to a record low from the post-Soviet history level and is target 4%.

Putin called for maintaining these positive trends, although economic growth is accompanied by a 1.2% drop in incomes of citizens since the beginning of the year.

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