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Russia eyes economic self-development, proves national strength amid Western pressure: Putin

04 December 2014 20:56 (UTC +04:00)

Baku-APA. Russia seeks for more independent economic development and has proved its national strength amid Western sanctions, President Vladimir Putin said Thursday, APA reports quoting Xinhua.

Russia depends on itself for economic development, remains open to world investments and is not interested in arm races, Putin said in his annual state of the nation address to the Federal Assembly.

Western sanctions encourage Russia to attain more economic efficiency, he said, adding the government should overcome disorganized administration, irresponsibility and bureaucracy, which are "direct threats to our security."

Russian economy should get out of the trap of zero growth rate and reach an above-world-average development rate in the coming three to four years, so as to increase its share in the global economy and therefore strengthen economic independence, Putin said in the Kremlin Palace.

The government is tasked with solving the problem of high inflation and ensuring economic growth at the same time, as well as reversing the depreciation of the Russian ruble, Putin added.

Inflation rate should be brought down below 4 percent, while annual labor productivity should be no less than 5 percent, according to Putin.

He added that the Central Bank and other relevant departments have been asked to take harsh and coordinated measures to fight speculators in the currency market.

More proposals were made by the president to ensure a more independent Russian economy, such as the establishment of a new and transparent supervision system between business and government by 2015 in order to prevent obsessive governmental control, as well as a one-time full amnesty for repatriated offshore capital.

Alexei Makhlai, president of the Social Policy Research Center, a non-governmental organization, said Putin's capital amnesty proposal could succeed and help revive the stagnated economy.

"Putin hinted that the authorities would consider repatriation of the assets not only as an economic move, but also as a political sign of support to the Russian state, as a manifestation of patriotism," he told Xinhua.

Meanwhile, Maxim Osadchy, head of analysis at Moscow-based Corporate Finance Bank, disagreed, citing the lack of trust between businessmen and politicians.

"The other thing is, the investors' behavior depends on real economic situation much more than on any politician's words," the expert told Xinhua.

Russia's economy has been hit hard due to the continuous fall of world oil prices and Western sanctions, with the country's Economic Development Ministry estimating a 0.8 percent contract in 2015. The Russian currency, ruble, has also lost nearly 40 percent of its value against dollar and euro.