The Russian president has said that foreign sanctions have made the country stronger
Russian President Vladimir Putin met with business leaders in the Kremlin on Monday, discussing the state of the economy and the effects of Western sanctions.
Marking Russian Entrepreneurship Day, the president thanked business leaders and their employees for driving the recovery from foreign restrictions and effectively filling the space left by corporations that chose to cut ties with Moscow over the Ukraine conflict.
Fourth largest economy in the world
Putin emphasized that the Russian economy now ranks fourth globally by purchasing power parity (PPP). He credited the accomplishment to the business community and workers across the country.
According to the International Monetary Fund, Russia overtook Japan as the fourth-largest economy based on PPP in 2024, ranking behind only China, the US, and India.
Stable GDP growth
GDP grew by 4.1% in 2023 and 4.3% in 2024 — a “solid result,” considering the “difficult conditions,” Putin said.
“The growth was neither confined to individual sectors nor limited to specific regions. On the contrary, it spanned a wide spectrum: industry, agriculture, digital technologies, services, finance, and more,” he noted. The government projects a 2.5% growth rate in 2025.
No ‘rolling out carpets’ for McDonald’s
Putin said the government would devise a program for foreign companies wishing to return to the Russian market, “but only insofar as it aligns with the protection of our own business interests.” Moscow, he added, will “not be rolling out a carpet” for McDonald’s and other corporations.
“Let’s consider the terms. If their return is beneficial to you, then by all means, they can come back. If something isn’t currently in your interest, let’s work together to make it so,” Putin told Russian business leaders.
Fighting ‘bad IT habits’
The president welcomed calls to “restrict” access to services from companies like Microsoft and Zoom, which officially exited the Russian market after 2022. “We need to strangle them. I completely agree. I say this openly because they are trying to strangle us. We need to reciprocate,” he said.
He stressed that Russia never forced any IT company to leave in the first place. However, he urged Russians to abandon the “bad habits” of relying on foreign services.
Sanctions making economy stronger
Putin argued that Western sanctions have inadvertently helped the country ramp up domestic production and become more self-sufficient. “Russia has always demonstrated remarkable resilience in the face of hardship. This is one of those moments when overcoming difficulties only makes us stronger,” he said.
Fines for breaching ‘local production’ laws
The president also backed the idea of fining state-owned companies for violating recently adopted procurement laws that prioritize domestically produced goods over foreign ones. “There must be both oversight and sanctions … to deter violations of the norms,” he said.
