IN BRIEF: Putin speaks on Russia’s economic sustainability, Europe’s aggression

IN BRIEF: Putin speaks on Russia’s economic sustainability, Europe’s aggression Russia’s offensive in the special military operation zone is gaining momentum, the president says© Alexander Kazakov/Russian Presidential Press and Information Office/TASSMOSCOW, October 2. /TASS/. Despite the existing problems, Russia continues to develop, and its economy remains healthy and sustainable, Russian President Vladimir Putin told the plenary session of the 23rd Valdai International Discussion Club. Read alsoNew world’s conflicts, chaos, West’s attempts to destroy Russia: Putin’s speech He also said that Russia’s offensive in the special military operation zone is gaining momentum, and that Europe’s aggressive attitude towards Russia is aimed at diverting attention from domestic economic failures. Below are the Russian leader’s key remarks. Russia’s sustainability and way to future Russia is ready to forge its path to the future with realistic assessment of risks, opportunities and necessary goals, "and, of course, it is ready to engage in such efforts jointly with other countries and peoples." "We do have some difficulties, but we are resolving them. Macroeconomic indices show that our economy is healthy, and that our financial system and economic institutions are working in a sustainable manner." Russia’s economy has certain problems and issues that need to be solved, but "who does not?" "Look at any other region of the world. Everyone has its own problems." Russia had inflation problems: "We jump-started the economy, we overheated it. And we made a deliberate choice to cool it down. We did it deliberately, being perfectly aware that if the Central Bank raises the key rate, investment will decline. It was obvious to everyone, and it did lead to such consequences. What matters now is to make sure that we don’t overcool the economy." This year, inflation nearly halved compared to 2025. "This year’s budget deficit is around three percent. I’m sure that next year it will be two." Situation in special operation zone The situation in the special operation zone is gaining momentum, with over 1,300 square kilometers of territory taken under Russia’s control in September alone. "This is 2.5 times higher than in the previous months." The government of Ukraine and the European Union claim they will be able to hold the remaining 11% of Donbass’s territory over the next year and a half or two. "We believe that it will happen way sooner, given the pace of our advance, which, as I have just mentioned, is accelerating." For Russia, the situation around Ukraine is not a question of land, it’s a question of people. "It’s not about a piece of territory, it’s about people. The point is that we need to create conditions not for a temporary truce, but for a lasting peace. And we need security guarantees for that." It is necessary to strive for peace agreements on Ukraine: "If they [Western countries and Ukraine] agree to terms that Russia also finds acceptable, it will be better to put an end to these sad events and avoid additional casualties on both sides." Russia is ready to launch and complete negotiations on Ukraine as promptly as possible, but, "naturally, on conditions that the Russian Federation and its people find acceptable." "However, it appears that the other side simply does not want to end the hostilities." Russia’s response Kiev troops started to strike Russian cargo ships in the Black Sea, and Russia had to respond: "Well, we gave our answer. And now they are asking us to stop via all channels. But they [the Kiev government] were the ones to start this." "They started attacking our refineries, openly declaring that their objective is to harm our economy. They attained their goal to a certain extent because, according to our estimates, we lost about 1% of our GDP. They deliberately started striking civilian targets. Well, they got a tit-for-tat response." The Russian armed forces started delivering strikes on sites that are crucial for the Ukrainian economy: "Now, by their own admission, they effectively have no metallurgical industry left." Europe’s aggression At this point Europe’s leading countries "are much more hostile towards Russia than the United States." While the United States "is seeking to end the conflict," many European countries, "have now perhaps become the ‘instigators’ of aggressive attitude toward Russia, creating additional crises between Russia and Europe." They are "driven by the unfavorable situation in their own economies, and, consequently, by the unfavorable situation for the ruling elites, combined with shifting political moods." European politicians want "to justify the need of preparations for war, and to mobilize as many supporters around themselves as possible in order to remain in power." "The logic is very simple, and I’m sure that this constitutes a significant portion of the reasoning behind Europe’s behavior towards the Russian Federation." "We are not threatening anyone, and we have no intention of attacking anyone, neither in 2029, nor in 2030, nor in 2050. However, if we face aggression, we will be forced to respond. European citizens should clearly understand this and distinguish between our position and the stance taken by certain political leaders in their countries." The continuous stoking of rhetoric by many European countries is driven by the serious worsening of their domestic economic and political situation. "Look at what is happening in the economy, look what is happening in the social sphere and the quality of life in major European countries. In this situation, they have to shift the focus of their citizens’ attention from domestic issues to outside problems." "We have no preconditions for resuming and restoring relations with Europe in general or with particular countries." EU countries "will collapse on their own" because they continue to make mistakes that negatively impact their own economies. "But this is none of our business. We are not interfering." Weapons as competitive advantage Russia understands that in case of a direct attack by NATO, it will have to face "an adversary more than twice our size in terms of numbers." "They have huge economic potential, huge military potential. Indeed, our forces and assets would not be that extensive to counter such a threat. And we will have to use our competitive advantages in this struggle." One of Russia’s main competitive advantages are its strike capabilities. "Yes, of course, France and the United Kingdom are nuclear powers. We understand that, and we are fully aware of that. However, no one else possesses the strike capabilities that Russia has today. And this is our competitive advantage." "We are not threatening anyone. We simply make it clear that our tools to defend ourselves are not that numerous." Russia has advanced new weapons systems: "We have new, modern capabilities, including entirely new missile defense penetration systems, advanced medium-range weapons, and state-of-the-art systems that other nations do not possess yet." "All nuclear powers are highly technologically advanced countries. They will have it at some point in the future. But now they don’t, only we do." While building new facilities, Russia is taking modern methods of warfare into account: "I assure you, we are currently considering this, and, when we build new enterprises in this sector, we are taking modern methods of warfare into account and do everything possible to ensure they are located in the safest areas possible." "Construction is under way." Relations with US Factors marring and damaging Russia-US relations have developed over decades: "We would very much like to see these divisive factors to become a thing of the past, allowing new prospects for mutually beneficial cooperation to emerge." Russia has proposed and continues to propose to the United States to resume dialogue on strategic arms limitations: "We don not mind resuming this dialogue; we have never been against it. We have offered it, and we are offering it now. There is no answer. Well, if there is no answer, then so be it." It was Washington that withdrew from agreements curbing the arms race and the proliferation of nuclear weapons: "We were not the ones to walk out of these treaties. The United States did it, under this or that pretext." "I have quite good, long-standing relations with President (of the US Donald - TASS) Trump. I’m thankful for his efforts to resolve the Ukrainian crisis, and, as I’ve said many times, he is doing it in good faith. And I’m thankful for that, too." Partnership with China Putin and Chinese President Xi Jinping understand each other without words or interpreters: "You know, what is interesting. It only took one word from him or me, and without interpreters - and without knowing each other's languages - we understood each other instantly." China never seeks to resolve emerging problems and issues through pressure or military force. This is alien to its philosophy, which is fundamentally rooted in pursuing solutions through peaceful means. For its part, Russia recognizes Beijing's approach, shares this perspective, and notes the strong outcomes generated by the joint efforts of Moscow and Beijing. "Can China play any role [in promoting peace] at this point? Of course it can. And, first of all, this stems from its growing economic and military potential, from its readiness to expand the zone of free cooperation, and this is what Chinese President Xi Jinping’s initiative ‘One belt, One Road’ is aimed at." "Together with China, we are developing this initiative, aligning it with Russia's respective projects, including the Greater Eurasian Partnership. We are working jointly, and this is yielding strong, positive results." Moscow and Beijing will undoubtedly establish a joint framework to actively utilize the Northern Sea Route (NSR) to serve the interests of Russia and China. Indian premier and peace initiatives The diversity and unity of Indian culture are highly admirable: "There is something about Indian culture that possesses such uniqueness - a distinctiveness and unity at the same time - that it undoubtedly serves as an exemplary model. This, of course, deserves to be an example." At every meeting, Indian Prime Minister Narendra Modi raises the question of resolving the conflict in Ukraine: "He comes up with very good ideas, aimed at searching for mutually acceptable - specifically mutually acceptable - solutions." The head of the Indian government has a neutral stance, which is nevertheless aimed at bringing the conflict to an end: "By the way, we are grateful to the Indian premier for his desire to resolve this conflict peacefully, and as quickly as possible." Multipolarity and BRICS The world should be multipolar; it cannot be bipolar: "It should take into account the interests of all participants of international relations. And, as we have said many times, there is the cornerstone, basic principle: the security of one nation cannot be achieved at the expense of the security of others. This is one of the cornerstones that we believe should form the foundation of the future world order." "We cannot say exactly how this world will look like. But we need to strive to jointly determine the pillars of the future world order. And this needs to be done without any preconditions." "An organization such as BRICS may certainly become the prototype for building the future world order." At this point, BRICS represents nearly half of the planet’s entire population, and its share in the global economy is constantly growing. "This is happening every year, and we can see it in the statistics. And, most importantly, the principles of BRICS' formation and functioning stipulate that everyone is equal. There is no domination of any kind there, and this is what makes it so attractive." So far, it is hard to say what role BRICS will play in the new architecture of international relations, but it can already be said with certainty that it is "a useful mechanism." 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