Here's the link to the speech video.
St. Petersburg International Economic Forum (SPIEF) is an important annual event to understand the current and future developments of the Russian economic and business environments. One of the most important speeches of the event is Putin's talk. Businesses are eager to know what Mr Putin has to say and try to figure out what opportunities lie ahead in the Russian markets.
This year speech lasted more than one hour and here's the summary:
The real reason of the current Ukraine conflict is that the US is trying to maintain the global supremacy (unipolar power). In order to do that, their policies is to contain rising countries and make sure these countries won't be equal or surpass the US.
Economic warfare:
Russia is coping well with the economic war. They have enough money to support their people and businesses. The government budget surplus is very high this year (due to high commodity prices and disciplined spending). Also, Russia had been preparing their economy very well in the last 8 years so when the West started the economic war, Russia stood strong. Economic preparations include: import substitutes, agriculture development and other measures..
Western sanctions on Russia have failed miserably. They backfire on the Western economies. Result of sanctions in the West: high CPI growth rate (record in 40 years), reduced economic competitiveness, reduced growth rates and rising inequality which will lead to social instability, populism and radicalism.
The reason sanctions fail is that the West has an outdated views that Russian economy is backward and can be easily killed.
The reasons that the West economies are doing poorly are:
Irresponsible economic policies. They use money printing to solve their economic problems. Money supplies have increased 38% and 20% in the US and EU respectively recently. Of course, money printing can't solve the problems and as a result, CPI growth rates increase sharply. Also, it is destroying their currencies because their currencies aren't backed by real assets.
EU failed energy policies. The EU is having an economic crisis now because of their poor green energy policies in the last decade.
Government economic policy principles:
Openness and equal cooperations with other friendly nations.
Free market: allow entrepreneurs freedom to do business; reduce regulations and simplify tax systems.
Balanced macroeconomic policies, targeting long term CPI growth rate to 4%
Modernise infrastructures by investing more money: roads, housing.
Technology sovereignty: goal is to produce critical technologies in Russia and they don't need to depend on other countries.
COMMENTS on the speech:
Russia is doing very well because they have a strong financial position with very disciplined fiscal policies and talented people. It shows that their government is effective.
Their economic policies are very pro business so economic growth will continue. Russian standards of living will continue to rise in the foreseeable future as long as Putin is still in power.
With a strong economic position, the Russian military operation in Ukraine will succeed and they will achieve their goals of protecting Russian ethnic groups and eliminating future Ukraine military threats to Russia. The West won't be able to stop it.
Putin's assessment of the West failed economic policies is correct. The West continues in the path of economic ruins and their people will suffer further.
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