Russian economy nosediving into ‘crisis’ as sanctions bite deeper into Putin’s pocket | World | News

Zelenskyy promises to make Crimea “part of the European Union”.

Russia’s economy is in full-blown crisis as a result of damaging Western sanctions, said an aide to Ukrainian President Volodymyr Zelenskyy. During a week in which Russian President Vladimir Putin launched a series of extraordinary accusations against the West, Vladyslav Vlasiuk said that Moscow was facing a catastrophic 60 percent drop in gas and oil revenues in six months.

After a series of largely discredited referendums, Putin yesterday confirmed the annexation of four territories of Ukraine during a televised Kremlin address packed with anti-Western rhetoric and thinly veiled threats.

However, Mr. Vlasiuk, who works for the Office of the President of Ukraine, suggested that he should better focus on the deepening financial crisis in his own country.

Referring to action by the international community in response to Putin’s February 24 invasion, Mr Vlasiuk, who is also deputy chief of Task Force Ukraine headed by Attorney General Iryna Venediktova, told Express.co.uk: “We see it from Dem According to a state report in Russia, they had to cut government spending by at least 10 percent, suggesting the sanctions are having some effect.

“Also this year the government twice increased the cost of utility bills for average Russians. For the first time it was six percent in July and now nine percent.

Vladimir Putin Volodymyr Zelenskyy

Vladimir PutinVladimir Putin and President of Ukraine Volodymyr Zelenskyy (Image: GETTY)

“So we see the hypocrisy of their Russian propaganda – they always say ‘You people in Europe, your sanctions are hurting you, you had to increase your electricity bills because of the sanctions’, but now they are doing exactly the same thing because of the sanctions.”

Several sectors have been particularly hard hit, Mr Vlasiuk said.

He explained: “The general rule is that the more complicated the economic sector, the more sanctions they face.

So in the aircraft industry almost no planes are made anymore because they were so dependent on Western technologies and components.

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new York

New York, where the Russian consulate was vandalized with red paint (Image: GETTY)

“If we look again at the oil industry and the gas industry, there’s a huge reliance on Western technology, so it’s really difficult for them to keep extracting oil and gas.”

Mr Vlasiuk agreed that the word ‘crisis’ applied to the situation the Russian economy is in now, saying: ‘We did some kind of economic analysis last month and we will do another one in the next few weeks.

“The basis is that sanctions, particularly caps on oil prices, will hurt Russia’s oil and gas revenues.

“It’s going as planned, we believe that from February next year Russia will have 60 percent less oil revenue for its budget, which will make a real difference.

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Volodymyr Putin

Volodymyr Putin has warned Ukraine against ceding territory to Russia (Image: GETTY)

Sergey Lavrov

Sergei Lavrov, Russian Foreign Minister at the United Nations (Image: GETTY)

“So by the end of next year, it’s going to be really tight for Russia to commit to a budget and actually conduct the military operation.”

Mr Vlasiuk suggested Putin’s belligerent statements had less to do with his country’s dangerous economic situation than with the advances made by Ukraine’s armed forces in recent weeks.

He added: “It’s pretty clear they plan to take Kyiv in three days or so. They didn’t succeed.

“And in all other parts of Ukraine they are not doing very well.

Annexation of Russia Factile

Annexation of Russia Factile (Image: Express)

There is no room for discussion unless all stolen regions of Ukraine are returned to us

Vladyslaw Vlasiuk

“When we talk about sanctions, the point is to prevent him from continuing his invasion and to put so much pressure on him that he has to leave our country.

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“This so-called special operation has clearly failed, and now we believe that the Russians are beginning to understand this even after the announcement of mobilization.”

Mr. Vlasiuk also emphasized his belief that there is no room for compromise or negotiation when it comes to Putin.

Mr Vlasiuk, quoting Mr Zelenskyi himself, stressed: “That is exactly what our President is saying. There is no room for discussion unless all stolen regions of Ukraine are returned to us.”

Banks in Russia

Russia owes billions to banks around the world (Image: Express)

Putin’s proclamation coincided with Russian forces in one of the four regions facing encirclement by Ukrainian troops, showing how weak Russia’s hold is over some of the areas it claims.

In one of his most strident anti-American speeches in more than two decades in power, Putin signaled that he was ready to continue the fight for what he called a “greater historic Russia,” and slammed the West for destroying Russia , without evidence, accused Washington and its allies of blowing up the Nord Stream gas pipelines.

The four Ukrainian regions involved in Putin’s land grab — Donetsk, Luhansk, Kherson and Zaporizhia — made a historic decision, he claimed.

He explained: “They have chosen to be with their people, their motherland, to live with their destiny and to triumph with them. The truth is on our side. Russia is on our side!”