Putin Claims Russian Economy Is Stabilising, Signals More Stimulus

Russian President Vladimir Putin said that while Western sanctions have been the main negative factor for the Russian economy recently, they have failed to achieve the aim of quickly undermining the economic and financial situation in the country.

• "Russia, as I already said, withstood this unprecedented pressure. The situation is stabilizing, the ruble exchange rate has returned to the levels of the first half of February and is determined by an objectively strong balance of payments," said Putin, cited by TASS news agency.
• He noted that the central bank "has already begun to reduce the key rate, which, of course, will further reduce the cost of loans in the economy," adding that "the budget should actively support the economy," effectively signalling continued monetary and fiscal aid.
• Putin's message was echoed by CBR Governor Nabiullina, who suggested that the authorities are willing to boost fiscal and monetary support. She said that policymakers "must have the possibility to lower the key rate faster" and "create conditions to increase the availability of credit for the economy."
• Nabiullina stressed the need for the Russian economy to living with Western sanctions, which have first struck the financial sector but will now increasingly affect the real economy. She urged companies to adjust their business models accordingly and flagged the possibility of relaxing rules on sales of FX proceeds.