Putin: Russia expects sanctions pressure to increase

The Russian economy has so far defied some predictions from Western analysts that it was facing a 15% hit to gross domestic product (GDP) this year.

Russian president Vladimir Putin attends concert marking Russia's annexation of four Ukrainian territories held in Moscow, September 30, 2022 (photo credit: Sputnik/Sergei Karpukhin/Pool via REUTERS)
Russian president Vladimir Putin attends concert marking Russia's annexation of four Ukrainian territories held in Moscow, September 30, 2022
(photo credit: Sputnik/Sergei Karpukhin/Pool via REUTERS)

Russian President Vladimir Putin on Thursday said that consumer demand remained weak and that he expected sanctions pressure on the Russian economy to intensify, in televised remarks from a meeting with government officials.

"In general, the situation here is stable," Putin said. "At the same time, it is important to understand that the sanctions pressure on Russia will only increase."

The West hit Moscow with unprecedented sanctions after Russia sent tens of thousands of troops into Ukraine on Feb. 24 in what it calls a "special military operation."

But the Russian economy has defied some predictions from Western analysts that it was facing a 15% hit to gross domestic product (GDP) this year.

Russia's Economy Ministry now expects a 2.9% contraction in 2022, while Western leaders hope the impact of sanctions will be long-lasting, and hold back the Russian economy for years.