Putin: the sanctions against Russia will hit the West as a boomerang

http://www.investor.bg/centralna-i-iztochna-evropa/335/a/putin-sankciite-sreshtu-rusiia-shte-udariat-kato-bumerang-zapada,172867/

The sanctions against the Russian companies and individuals will have “the effect of a boomerang” for the West. Announced the Russian president Vladimir Putin, at the so-called Russian Dvaos – International economic forum at Sankt Petersburg, quoted CNBC.

“The economic sanctions as an instrument for political pressure in the end will attack the economics of the countries that started them.” pointed out the president. “We gathered here for economic discussions, but we can’t ignore the politic”, noted the president.

He added that Moscow is planning to extend the Eurasian union, in which base will be Russia and China.

Putin also criticized the Ukrainian temporal government, pointing out that the current uneasy situation “is not because of Russia”. According to his words, Kiev “is with abusing with its position”

Meanwhile he called Ukraine for “a constructive dialog”. “I hope that we can have an agreement”, said the Russian president. “Although, as speaking to a family, I can say: they want discount , but they have to pay at least for the period, for which the old prices were actual, when there were discounts. And they don’t want to pay even for that. How can we solve the situation?”

“Practically we were supplying Ukrainian with gas for free. Who would agree with that?”, added Putin,

Despite that the Russian president said that Ukraine is guilty for endangering the supplies of gas for Western Europe. “Russia always has been trying to be a reliable supplier for energy sources for Europe. The current danger for the supplies for Europe occurred not because of us, but let’s says it honestly, it was fault of the transit country – Ukraine, which abused with its position of a corridor for our gas to Europe”. He added.

Despite of the achieved mega-deal with China, Putin’s speech in front of the business leaders comes at a moment of uncertainty for the Russian economy. The investor’s caution for the consequences of the Russian moves in Ukraine, helped the increasing possibility of falling in recession even in the first half of the year.

The inflation in Russia has grown to 7.3% in April, which made the Central Bank take actions, to stop the drop of the Rubles compared with the US dollar.   

Earlier this week Putin announced that the Russian Armies will back up form the boarders with Ukraine in the night before the president elections, which will be this weekend.