What is Putin’s greatest worry right now? His own citizens

Improving Russian citizens' dwelling requirements is President Vladimir Putin's greatest concern right now, he advised CNBC on Wednesday, providing a uncommon perception into the preoccupations of one of many world's strongest leaders.

"Our main problem, our main issue and goal is to increase the revenues of our citizens," Putin advised CNBC's Hadley Gamble on Wednesday. His reply got here after being requested what his greatest concern was right now, be it inflation, stagflation or the fuel disaster in Europe or pressure within the South China Sea.

"This is our main challenge … we need to ensure economic growth and to increase its quality. These are our long-term tasks," he stated.

Putin added that the federal government was "going to improve the social situation to increase the revenues of our citizens and to deal with the second very important task is the demographic situation. And it entails a lot of social issues, healthcare, education, supporting families with children."

"So these two very important issues, [the] demographic one and increasing the revenue of our citizens and improving their quality of life … should be solved on the basis of economic growth. That's what we are going to do in the near future," he stated.

Russian President Vladimir Putin attends a plenary session of the Russian Energy Week International Forum in Moscow, Russia October 13, 2021.Sergey Guneev | Sputnik | Reuters

His feedback come as Russia's GDP per capita, a core indicator of financial efficiency and generally used as a broad measure of common dwelling requirements or financial wellbeing, stays beneath its friends within the OECD and EU.

Chris Weafer, chief govt officer of Moscow-based technique consultancy Macro-Advisory, advised CNBC in September that "the real issue which scares the Kremlin is the changing demographics," with an rising variety of Russians born after the Soviet Union ended and demanding a greater commonplace of life.

″[They] need improved way of life, incomes social helps and a greater future for themselves and their households," Weafer said. "The huge problem for President Putin and the so-called Russian 'elites' shall be the best way to fulfill these expectations whereas retaining energy. Failure within the former will extra severely undermine to latter within the subsequent presidential time period – irrespective of who that president could also be."

Prosperity under Putin

During his two decades in power, Putin has undoubtedly overseen a period of growth in the Russian economy. Likewise, on the political front, Russia still stands firmly on the global geopolitical stage.

Like any economy, however, Russia has not been immune to global and domestic events both under and out of Russia's control that have unseated its growth trajectory and caused financial hardship to its citizens.

Read more on CNBC's interview with Vladimir Putin:

Putin says Russia is not using gas as a weapon, claims U.S. added to energy crisis

President Putin on Taiwan: ‘China does not need to use force’

$100 oil is ‘quite possible,’ Russia’s Putin says

This was most evident in 2014 when a fall in global oil prices, combined with Russia's decision to annex Crimea from its neighbor Ukraine, put massive pressure on the economy and society. This was due to lower government revenues for oil-exporting Russia and newly-imposed international sanctions on the country for its Crimea land grab. The big decline in the ruble led to rampant inflation and prices on basic products soared, seriously affecting Russian consumers.

Most recently, the Covid-19 pandemic also hit Russia's economy as hard, although it fared better than some developed economies. The World Bank noted that Russia's gross domestic product (GDP) fell by 3% in 2020, compared to contractions of 3.8% on average globally, and 5.4% in advanced economies.

"Several components helped Russia carry out comparatively higher: lately, Russia undertook important macro-fiscal stabilization efforts, leading to an improved fiscal place. An enormous banking sector clean-up, along with enhanced regulation and supervision, fortified capital and liquidity buffers," the Bank said in a report in May.  

Read more: 5 charts show Russia's economic highs and lows under Putin

Still, the pandemic remains a serious public health crisis in the country with cases high and vaccinations sluggish; on Wednesday, Russia reported its highest daily death toll since the start of the pandemic, breaking a previous record on Tuesday.

People walk through the Red Square in a sunny autumn day in Moscow on October 9, 2021.DIMITAR DILKOFF | AFP | Getty Images

Economists at the World Bank forecast last week that Russia's GDP would expand by 4.3% in 2021, before slipping back to grow by 2.8% in 2022 and then 1.8% in 2023 as the output gap closes. The Bank noted that "a continued world financial restoration, comparatively excessive oil costs, and an improved Covid state of affairs are anticipated to assist consolidate the incipient restoration in home demand."

Does the public want Putin?

President Putin refused to be drawn on whether he will run for office in 2024, although Russia's constitution was changed in 2020, controversially, in order to allow him to do so.

If he does run for re-election (with a win all but guaranteed unless there is seismic change in Russia in the next few years, given the oppression of opposition parties and politicians, like the jailed Alexei Navalny) then Putin, who's now 69, could potentially be in power until 2036.

Asked if he had a succession plan on Wednesday, Putin said "I want to not reply such questions, this is my conventional response. We will wait till the upcoming elections for that."

"The dialog on this regard is to stabilize the state of affairs. The state of affairs should be secure and secure to ensure that energy buildings and world buildings to work safely and responsibly," he stated.

With a flag depicting President Vladimir Putin, pro-Kremlin activists rally in Red Square, Moscow, March 18, 2014, to rejoice the incorporation of Crimea.Dmitry Serebryakov | AFP | Getty Images

Geopolitical occasions each at residence and overseas have led to Putin's reputation fluctuating broadly since 1999, in keeping with polls carried out by the unbiased Levada Center.

When Russia annexed Crimea, Putin's reputation soared from 61% to 85%, for instance, however since then his scores have steadily declined to their present stage, of 64% in September.

Whether Russians consider Putin can resolve the nation's inside issues, or ought to keep in energy after 2024 is one other matter.

Levada's newest survey on Putin's standing with the Russian folks, of 1,634 adults in late September with the outcomes launched this week, confirmed that 47% of Russians want to see Putin stay as president after 2024, whereas 42% are not looking for that — the best price since 2013.

Putin's preoccupation with progress and its trickle-down impact on odd Russians was simply one of many subjects he mentioned with CNBC at Russian Energy Week on Wednesday. The president additionally commented on all kinds of urgent issues, from Europe's fuel disaster to the outlook for oil costs, in addition to rising tensions between Russia's ally China (President Xi Jinping as soon as stated Putin was his finest good friend) and Taiwan.

Putin additionally mentioned a variety of power points alongside BP CEO Bernard Looney, TotalEnergies CEO Patrick Pouyanne, ExxonMobil CEO Darren Woods and Daimler CEO Ola Kallenius on a panel.

Read extra: Putin says 'utter nonsense' Russia is utilizing fuel as a geopolitical weapon, prepared to assist Europe

Russia is an influential pressure in each Europe and Asia given its place as a worldwide oil and fuel exporter, though lately Putin has spoken of the necessity to diversify Russia's economic system away from its reliance on power exports, an goal that has been prioritized after the 2014 oil worth crash.

based mostly on web site supplies www.cnbc.com

Related posts

Leave a Reply

Your email address will not be published. Required fields are marked *