Putin: Western sanctions on Russia "ridiculous"

Oct 02, 2014, 11:38 AM EDT
Vladimir Putin, Russia's president, speaks during the VTB Capital Investment Forum 'Russia Calling' in Moscow, Russia, on Thursday, Oct. 2, 2014.
Bloomberg/Bloomberg via Getty Images

In an address to investors and business leaders, President Vladimir Putin stated that Western sanctions would not block Russia's development as an economic power. The Russian leader also announced that Moscow would not raise taxes and would stick to its budget.

Reuters reports:

Attempting to take the higher ground in a speech to foreign and Russian investors, Putin said he was relaxed about the measures imposed on his country over Ukraine even though they had broken the fundamental principles of the global economy. Addressing financiers worried about the weakening economy, capital flight and a possible increase in state intervention, he said Russia was well placed to weather the storm.

Despite that optimism however, Ukraine remains a thorny issue. Forbes notes:

The Ukraine imbroglio has become Russia’s rainy day. Its umbrella has a few of its stretchers and ribs broken.  Heads are getting wet.  And investors are worried.  They wonder what the government and local companies will do now that long term financing from the U.S. and Europe have been cut off in sanctions. With new foreign debt due before the end of the year, the market is pricing in the likelihood that Russia’s Central Bank will use some of the $420 billion it has in reserves to pay lenders.