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| Putin predicts economic recovery but warns West against pressuring Russian ‘bear’ | Putin predicts economic recovery but warns West against pressuring Russian ‘bear’ |
| (about 1 hour later) | |
| MOSCOW —Russian President Vladimir Putin, under pressure to show a path out of the country’s economic crisis, predicted Thursday recovery in two years at the most despite mounting bad news: a looming recession, a severely weakened ruble and growing fears about the country’s financial instability. | MOSCOW —Russian President Vladimir Putin, under pressure to show a path out of the country’s economic crisis, predicted Thursday recovery in two years at the most despite mounting bad news: a looming recession, a severely weakened ruble and growing fears about the country’s financial instability. |
| Speaking at his annual year-end news conference — taking questions directly from the national and foreign media — Putin said the Russian central bank and government were taking adequate measures to support the ruble, which has plunged in value against the U.S. dollar. | Speaking at his annual year-end news conference — taking questions directly from the national and foreign media — Putin said the Russian central bank and government were taking adequate measures to support the ruble, which has plunged in value against the U.S. dollar. |
| Putin’s news conference came as Russia suffers through its most serious economic challenges since a 1998 fiscal meltdown shortly before Putin’s rise to political power. The current crisis is also a major test for Putin, whose reputation is largely built on safeguarding Russia’s strength and stability. | Putin’s news conference came as Russia suffers through its most serious economic challenges since a 1998 fiscal meltdown shortly before Putin’s rise to political power. The current crisis is also a major test for Putin, whose reputation is largely built on safeguarding Russia’s strength and stability. |
| “Rates of growth may be slowing down, but the economy will still grow and our economy will overcome the current situation,” Putin said at the televised news conference. “I believe about two years is the worst case scenario. After that, I believe growth is imminent.” | “Rates of growth may be slowing down, but the economy will still grow and our economy will overcome the current situation,” Putin said at the televised news conference. “I believe about two years is the worst case scenario. After that, I believe growth is imminent.” |
| A steady depreciation of the ruble has been underway for the last several months, fueled by falling oil prices — Russia’s main export — and Western economic sanctions over Russia’s involvement in Ukraine. | A steady depreciation of the ruble has been underway for the last several months, fueled by falling oil prices — Russia’s main export — and Western economic sanctions over Russia’s involvement in Ukraine. |
| But it turned into wild swings in the exchange rate over the past few days, with rates peaking at almost 80 rubles to the dollar Tuesday after the central bank dramatically raised interest rates. | But it turned into wild swings in the exchange rate over the past few days, with rates peaking at almost 80 rubles to the dollar Tuesday after the central bank dramatically raised interest rates. |
| The ruble lost more ground against the dollar Thursday despite central bank action to shore up the currency, which is around 45 percent down against the dollar this year. | The ruble lost more ground against the dollar Thursday despite central bank action to shore up the currency, which is around 45 percent down against the dollar this year. |
| A weakened currency drives up prices, makes it harder for companies to repay loans that were taken out in dollars or euros, and waters down Russians’ savings. | A weakened currency drives up prices, makes it harder for companies to repay loans that were taken out in dollars or euros, and waters down Russians’ savings. |
| Putin had been silent as the currency collapsed this week. | Putin had been silent as the currency collapsed this week. |
| He acknowledged partly that Russia had helped to lay the groundwork for the current crisis by failing to diversify the economy. | |
| But in general, he blamed “external factors, first and foremost” for creating Russia’s situation — and continued to be defiant, blaming the West for intentionally trying to weaken Russia and foment problems, economic and otherwise, in the country. | But in general, he blamed “external factors, first and foremost” for creating Russia’s situation — and continued to be defiant, blaming the West for intentionally trying to weaken Russia and foment problems, economic and otherwise, in the country. |
| “No matter what we do they are always against us,” Putin said, one of a series of observations directed at how he said the West has been treating Russia. | “No matter what we do they are always against us,” Putin said, one of a series of observations directed at how he said the West has been treating Russia. |
| Putin attributed Western sanctions that have targeted Russia’s defense, oil and gas and banking sectors for about “25 percent” of Russia’s current difficulties. | Putin attributed Western sanctions that have targeted Russia’s defense, oil and gas and banking sectors for about “25 percent” of Russia’s current difficulties. |
| But Putin remained defiant about the actions that brought on the Western backlash, including Russia’s annexation of the Crimea peninsula after pro-Moscow rebels in eastern Ukraine began an uprising earlier this year. Putin repeated Moscow’s claim that Russia has not directly aided the rebels. | But Putin remained defiant about the actions that brought on the Western backlash, including Russia’s annexation of the Crimea peninsula after pro-Moscow rebels in eastern Ukraine began an uprising earlier this year. Putin repeated Moscow’s claim that Russia has not directly aided the rebels. |
| “Taking Texas from Mexico is fair, but whatever we are doing is not fair?” he said, in comments seemingly directed at the United States. | “Taking Texas from Mexico is fair, but whatever we are doing is not fair?” he said, in comments seemingly directed at the United States. |
| Putin also suggested that the West was demanding too many concessions from Russia, including further nuclear disarmament. Likening Russia to a bear — a longtime symbol of the country — he chided the West for insisting the Russian bear “just eat honey instead of hunting animals.” | Putin also suggested that the West was demanding too many concessions from Russia, including further nuclear disarmament. Likening Russia to a bear — a longtime symbol of the country — he chided the West for insisting the Russian bear “just eat honey instead of hunting animals.” |
| “They are trying to chain the bear. And when they manage to chain the bear, they will take out his fangs and claws,” Putin said. “This is how nuclear deterrence is working at the moment.” | |
| The news conference was heavily promoted on Russian state television Wednesday in a 40-second trailer with images of Russian triumph against the perils of the world. | The news conference was heavily promoted on Russian state television Wednesday in a 40-second trailer with images of Russian triumph against the perils of the world. |
| Despite the economic woes buffeting his nation, an Associated Press-NORC Center for Public Affairs Research poll released Thursday found that some 80 percent of Russians still support him. | Despite the economic woes buffeting his nation, an Associated Press-NORC Center for Public Affairs Research poll released Thursday found that some 80 percent of Russians still support him. |
| In a sign that the Kremlin viewed the crisis not just as an economic threat but as a danger to Russia’s fundamental security, the Russian Security Council said Wednesday it had drawn up a response plan and given it to Putin to review. The head of the council, Nikolai Patrushev, a former head of the successor agency to the KGB, did not disclose details. The body usually focuses on matters of war and peace, and it is highly unusual for it to become involved in economic policymaking. | In a sign that the Kremlin viewed the crisis not just as an economic threat but as a danger to Russia’s fundamental security, the Russian Security Council said Wednesday it had drawn up a response plan and given it to Putin to review. The head of the council, Nikolai Patrushev, a former head of the successor agency to the KGB, did not disclose details. The body usually focuses on matters of war and peace, and it is highly unusual for it to become involved in economic policymaking. |
| “The government and central bank have begun working seriously on stopping this bacchanalia on the currency market,” Putin aide Andrei Belousov told Russian news agencies after Prime Minister Dmitry Medvedev convened an emergency meeting of top economic officials and the heads of major energy companies. | “The government and central bank have begun working seriously on stopping this bacchanalia on the currency market,” Putin aide Andrei Belousov told Russian news agencies after Prime Minister Dmitry Medvedev convened an emergency meeting of top economic officials and the heads of major energy companies. |
| Putin’s press secretary on Wednesday promised “a number of measures” in coming days to fight the crisis. | Putin’s press secretary on Wednesday promised “a number of measures” in coming days to fight the crisis. |
| Russian leaders also have sounded somewhat more conciliatory toward Ukraine in recent days, perhaps in a bid to ease sanctions. The measures were imposed after the Kremlin annexed Crimea in March and then helped to fuel a pro-Russian rebellion in eastern Ukraine. | Russian leaders also have sounded somewhat more conciliatory toward Ukraine in recent days, perhaps in a bid to ease sanctions. The measures were imposed after the Kremlin annexed Crimea in March and then helped to fuel a pro-Russian rebellion in eastern Ukraine. |