Putin says Russia has survived the West’s ‘economic blitzkrieg’ of sanctions – but admits unemployment and inflation will rise

• Vladimir Putin said Wednesday that Russia had survived an “economic blitzkrieg” of Western sanctions.
• However, he warned of a “temporary” rise in unemployment and inflation in Russia.
• The West has hit Russia with sweeping sanctions aimed at hobbling the country’s economy.

Russian President Vladimir Putin said Wednesday that an “economic blitzkrieg” of Western sanctions had “failed” — but told his government and citizens to prepare for rising unemployment and inflation.

In a televised government meeting, Putin called on his countrymen to band together to rise above crippling sanctions applied by the West to Russia after it invaded Ukraine.

“Yes, it is not easy for us now,” Putin said, according to AFP. “But this economic blitzkrieg against Russia has failed.”

However, he acknowledged several challenges facing the Russian economy, predicting a “temporary” rise in inflation and unemployment, according to Bloomberg.

“The new realities will require deep structural changes in our economy,” Putin said, per Bloomberg. “And, I won’t hide it, they won’t be easy.” 

At the meeting, Putin ordered government officials to increase social benefits and ensure the country had adequate supplies of essential consumer products to stem a price surge, per Bloomberg. Consumer spending jumped by 1 trillion rubles ($9.5 billion) after the Ukraine invasion as Russians flocked to stock up on food and other staples, Putin said, per Bloomberg.

The Russian leader assured officials that the Kremlin had “all the necessary resources to solve long-term tasks,” per AFP.

He added: “The current situation is, of course, a test. I am sure that we will pass it with dignity and hard work. We will overcome these difficulties.”

Putin’s meeting addressing economic issues came after the US, UK, European Union and other Western nations imposed sanctions on Russia aimed at hobbling its economy. Russia’s central bank is among several institutions targeted, as are wealthy businessmen with links to the Kremlin.

Russia’s central bank responded to the sanctions by more than doubling its base interest rate, from 9.5% to 20%, and stepping up gold purchases.

The Moscow Stock Exchange remains closed for the third week running, to avoid a collapse in equity prices.

Meanwhile, Western companies including McDonald’s, Coca-Cola, and oil giants BP and Shell have been exiting Russia en masse.

Putin has warned foreign companies that Russia could seize their assets if they stop doing business in the country, and could even nationalize them.