The strengthening of the ruble and the normalization of consumption are, in his opinion, the origin of this movement.
Russian President Vladimir Putin said Monday his country’s economy was “stabilizing” after it was hit by volleys of Western sanctions after the start of his military operation in Ukraine.
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“Inflation has slowed down, weekly price growth has approached normal values and prices for a number of products have already started to fall,” Vladimir Putin said during a government meeting devoted to economic issues. This resilience, he says, rests on two factors: the good health of the ruble, which has been “actively strengthened lately” to return to pre-crisis levels. And “consumer demand,” which returned to normal after a “February-March peak” as Russians rushed to shops and daily consumer goods amid fears of shortages or a drop in the ruble.
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The Russian president called for “ensuring a gradual normalization of price dynamics” and avoiding “a dramatic fall in demand.” Russia has been hit by several rounds of Western sanctions, including embargoes on key exports, following its military intervention in Ukraine launched on February 24, which have pushed up inflation already high since the Covid-19 pandemic. With Vladimir Putin reassuring that the Russian economy has weathered the shock, economists believe the worst is ahead as the impact of the sanctions becomes more visible.
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