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Putin reiterates tough stance against western pressure

(Xinhua) Updated: 2014-12-19 08:54

Russia's current difficult economic situation is primarily caused by external factors, but also reflects the Russian economy' s insufficient diversification, Putin said.

It's rather difficult to reshuffle the economic mechanism, he said, as businessmen would try to invest where they could get the maximum and quickest profits under a favorable investment environment.

"We have been applying various instruments for several years to create more favorable conditions for developing the manufacture industry and increasing production. But the process is getting more difficult, especially when it is more profitable to invest in the energy sector," said the president.

Admitting Western sanctions against Russia seriously damaged its national economy, Putin insisted that the current situation can be used to offer additional conditions for production businesses, which would be a start to diversify the economy.

"External conditions would urge us to be more effective and shift to more innovative development ways," he noted.

Putin specified that for the successful development of Russian economy, businesses should be provided with a favorable and free environment, as property right should be guaranteed and preferences for production be enhanced.

Relevant measures mentioned in his state-of-the-nation address on Dec. 4 would be the concentration of Russian government for a period of time and be consolidated with practical and effective policies, Putin said.

He noted that it would take at most two years for the Russian economy to rebound under the most unfavorable scenario.

"I said that even given the most unfavorable internal market condition, this situation may last for about two years...But the situation may start improving even earlier...in the first, second quarter, in mid-2015 or at the end of next year. No one can say for sure," according to Putin.

Subsequent growth and recovery from the current situation is " inevitable" amid the overall growth of the global economy, Putin said. "Additional energy resources will be consumed as the world economy expands."

The president reiterated that the government should do much more to diversify the Russian economy, as "it would simply be impossible to function otherwise."

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