Advertisement

Putin stakes no claim to superpower status

Russian president says that, at best, the economy is No. 5 in the world.

By Daniel J. Graeber
With the economy sagging under a series of pressures, Russian President Vladimir Putin says he has no claims for a superpower status for Russia. Photo courtesy of the office of the Russian president
With the economy sagging under a series of pressures, Russian President Vladimir Putin says he has no claims for a superpower status for Russia. Photo courtesy of the office of the Russian president

SOCHI, Russia, Jan. 12 (UPI) -- As the national economy declines under pressure from sanctions and low oil prices, Russia's president said there are no claims to a role as a superpower for Russia.

Lower crude oil prices are hurting the economies of nations like Russia that depend on energy for revenue. The situation for Russia is compounded by economic sanctions imposed in response to the Kremlin's policies in Ukraine, sanctions that limit access to Western markets.

Advertisement

Russian President Vladimir Putin said in an interview with German newspaper Bild that Russia's economy is, at best, fifth in the world in terms of volume.

"We do not claim the role of a superpower," he said. "This role is very costly and it is meaningless."

RELATED U.S. coal getting squeezed

RECOMMENDED North Korea regime deeply divided, source says

In the first phase of his interview, Putin said the economy was weakened to the point that revenue outside the energy sector was now feeling pressured. The worst threat, however, was the harm caused by falling oil prices.

In November, the International Monetary Fund said there were "tentative" signs of recovery in Russia. The economy for 2016 is expected to contract by 0.6 percent, compared with a 3.8 percent decline in 2015.

Advertisement

The Kremlin expects GDP growth of around 0.7 percent for 2016. From September to October, GDP grew by about 0.3 percent, compared with about 0.1 percent from the previous one-month period.

RELATED Gas prices follow crude oil lower

"[The economy] may have moved down to a lower place at present taking into account the economic difficulties," Putin said. "But we are confident that we have very good development prospects and potential."

Inflation is running in the double digits, but the IMF said that, absent a dramatic decline in crude oil prices, the pressure from rising costs should decline during 2016.

RELATED Texas drilling activity slumps

Latest Headlines

Advertisement
Advertisement

Follow Us

Advertisement