MOSCOW (AP) — Vowing never to
let the West defang his proud nation, President Vladimir Putin promised
Thursday to fix Russia's economic woes within two years by diversifying
and voiced confidence that the plummeting ruble will soon recover.
In a live,
three-hour news conference that has become a Putin holiday tradition,
the Russian leader demonstrated unwavering confidence in his domestic
policies despite the catastrophic collapse in the ruble. His fierce
defiance toward the United States flared throughout as he insisted the
West was trying to destroy Russia to grab Siberia's great natural
resources.
This year Putin held his televised extravaganza from a
particularly strong vantage point: An Associated Press-NORC Center for
Public Affairs Research poll released Thursday showed his approval
rating among Russians stood at 81 percent — a level far above the
ratings for other world leaders.
Putin
accompanied his message with trademark images of Russian pride, with
video showing him surrounded by Sochi Olympic athletes, petting a baby
tiger and greeting Russian cosmonauts. And his most stirring quotes
evoked a famed Russian symbol — the bear.
In
his speech, the man who has led Russia for 15 years sought to soothe
market fears that the government could use administrative controls, such
as fixing the ruble's rate or obliging exporters to sell hard currency,
to help stabilize the battered currency.
Putin said the nation's
hard currency reserves are sufficient to keep the economy stable, adding
the Central Bank should not aimlessly "burn" its $419 billion in
reserves.
"Our economy will
overcome the current situation. How much time will be needed for that?
Under the most unfavorable circumstances, I think it will take about two
years," he said.
Putin also acknowledged
that Western economic sanctions over Moscow's actions in Ukraine were
just one factor behind Russia's economic crisis, estimating they
accounted for roughly 25 to 30 percent of the ruble's troubles. He said a
key reason for the currency's fall was Russia's failure to ease its
overwhelming dependence on oil and gas exports.
After
Putin finished his performance, the Russian currency traded at 60
rubles to the dollar late Thursday, the same level as Wednesday. Still,
the currency has lost about half its value since January.
Russia's
benchmark MICEX index rallied 4.3 percent by late afternoon Thursday,
but consumers voted with their feet, buying cars, electronics and home
appliances in a desperate attempt to protect their savings before prices
go up.
Audi was the latest major company to suspend deliveries in
Russia amid the ruble's turmoil. Apple halted online sales earlier this
week.Putin struck a defiant note against the United States and the 28-nation European Union, saying the sanctions they slapped on Russia after it seized the Black Sea region of Crimea in March were part of a historical campaign to weaken Russia. He accused the West of trying to infringe on Russia's sovereignty, saying the Ukrainian crisis was just a pretext for Western action.
To get his point across, he brought in the metaphorical Russian bear.
"Sometimes I think, maybe
it would be better for our bear to sit quiet, rather than chasing around
the forest after piglets. To sit eating berries and honey instead.
Maybe they will leave it in peace," said Putin. "They will not. Because
they will always try to put him on a chain, and as soon as they succeed
in doing so they tear out his fangs and his claws."
By fangs and claws, Putin said he meant Russia's nuclear weapons, which are protecting its valuable natural resources."Once they've taken out his claws and his fangs, then the bear is no longer necessary. He'll become a stuffed animal," he said. "The issue is not Crimea. The issue is that we are protecting our sovereignty and our right to exist."
Putin urged a political solution for the crisis in Ukraine, where pro-Russian insurgents have been battling Ukrainian government troops since April, leaving more than 4,700 people dead.
He said Ukraine must remain one political entity, meaning that its pro-Russian, rebellious eastern regions should not break away. He also suggested the two sides hold a prisoner swap before Christmas.
Yet
he defended Russia's increased military activities, including
stepped-up Russian military flights in the Baltics that NATO says are
putting civilian flights at risk, as a necessary response to what he
described as aggressive Western action.
"We aren't on the offensive, we aren't attacking anyone, we are only defending our interests," he said.
Putin
said he was sure that Ukrainian President Petro Poroshenko sincerely
wanted a peaceful solution to the crisis but other forces in Ukraine
don't. He urged the Ukrainian government to grant amnesty to the rebels
and offer broad rights to eastern residents.
Putin said Russia wants to have normal economic and security ties with the West but wants to cooperate on equal terms.In Brussels, the EU beefed up its sanctions against Russia with a ban Thursday on investment in Crimea and other economic penalties, including measures aimed at keeping tourists away.
Beginning
Saturday, Europeans and EU-based companies cannot buy real estate or
businesses in Crimea, finance Crimean companies or supply services. EU
operators will no longer be allowed to offer tourism services to
Crimea's Black Sea beaches or other destinations. Cruise ships owned by
any EU-based companies or flying an EU member state's flag will also no
longer be allowed to call at Sevastopol or other Crimean ports except in
an emergency.
Despite his strong rhetoric, Putin still held out
hope for normalizing ties with the West, saying Russia stands ready to
expand its gas supplies to southern Europe using a prospective hub on
Turkey's border.
Turning to
the ruble's collapse, he said the government should work with exporters
to help stabilize the plummeting currency but not through formal orders.
He said he had talked to the leaders of some of Russia's major
companies to encourage them to sell more rubles — and one promised to
sell $3 billion to help stabilize the currency.
Putin
shrugged off the dangers of any "palace coup" by some of his
lieutenants amid Russia's economic crisis, noting his broad public
support. He also raised the performance of Igor Sechin, his longtime
confidant who heads the Rosneft state-controlled oil giant, ignoring a
question about Sechin's hefty paycheck.
In
an apparent goodwill gesture hours before the press conference, a
Russian tycoon under house arrest since September, Vladimir
Yevtushenkov, was released.
Shares
in Sistema, a company that Yevtushenkov controls and manages, shot up
more than 100 percent on Moscow's MICEX stock exchange on Putin's words
that he hopes that the company will regain its stance on the market.
One
of Sistema's most lucrative assets — the oil company Bashneft — was
transferred to the government this month, but Putin said
money-laundering charges against Yevtushenkov have been dropped.
John-Thor Dahlburg in Brussels contributed to this report.
Source: Yahoo News.
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