Putin: We are working on a payment system independent of the West

Russian President Vladimir Putin spoke at the St. Petersburg International Economic Forum (SPIEF), which was attended by 136 countries and addressed key issues of the global economy.

Stating that countries are in a real race to strengthen their sovereignty, Putin said, "Look at the processes developing dynamically in the modern world through the prism of economic relations. We see that there is a real race between countries in the competition for sovereignty at three fundamental levels: the state, cultural values, and the economy.

At the same time, countries that were the leaders of global development until recently are trying to protect their hegemony, which is slipping through their fingers, with truth or deception, that is, with all their might," he said.

"RUSSIA CONTINUES TO BE AMONG THE KEY ACTORS OF WORLD TRADE"

Stating that the technological race between countries is also continuing and that Russia has shown it is ready for this, Putin said, "Russia has proven that it is prepared for technological transformations at the highest level. We see how our financial sector, e-commerce, logistics services, and public administration system have already changed.

Similar processes are beginning to take place in the Armed Forces, where we largely need technological renewal. This is the most important, decisive issue for our country," he said. Pointing to the economic sanctions imposed on Russia by Western countries, especially after the start of the war in Ukraine, Putin said, "Despite all the blockades and illegitimate sanctions, Russia continues to be among the key actors of world trade and is actively developing its geography of cooperation.

Our trade with Asian countries grew by 60 percent from 2020 to 2023, with Middle Eastern countries by 2 times, with African countries by 69 percent, and with Latin American countries by 42 percent," he said. Noting that Russia conducts 3/4 of its trade volume with friendly countries, Putin said, "We must pay attention to the economies of developing countries. They will determine the future of the global economy. As of today, they account for 3/4 of our trade volume."

"WE WILL INCREASE THE USE OF NATIONAL CURRENCIES IN PAYMENTS"

Putin emphasized that an issue important for exports and imports is the international payment system. Putin said, "Trust in the payment systems of Western countries is decreasing day by day. In this context, the share of 'toxic' currencies of hostile countries in Russia's export payments decreased by half last year. Together with our foreign partners, we will increase the use of national currencies in foreign trade payments.

BRICS is working on the creation of an independent payment system that will not be subject to political pressure, abuse, and external sanction interference," he said. Putin added, "As of the end of last year, the increase in Russia's GDP was 3.6 percent, while it was 5.4 percent in the first quarter of this year. In other words, our (growth) rates are above the world average. In particular, this dynamic is shaped primarily by non-commodity sectors."

Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates later joined the BRICS group, which consisted of Brazil, Russia, India, China, and South Africa.

News Source: İHA