In an interview with German media outlet Bild, Russian President Vladimir Putin put away his characteristic stoicism and acknowledged that Western economic sanctions have wreaked havoc with national markets. When the Ukrainian people rose against their government last year, Russia invaded and annexed Crimea, a region neighboring Russia that lies along the Black Sea. In response to this aggressive action, the European Union and the United States placed economic sanctions against Russia as punishment.
"Concerning our possibilities on the international finance markets, the sanctions are severely harming Russian," said Putin, according to the Agence France-Presse.
Sanctions have targeted Russia's state finances, and their power and arms sectors. The EU, particularly, singled out businesses considered "materially or financially supporting actions undermining or threatening Ukraine's sovereignty, territorial integrity and independence," according to the BBC.
When asked in the Bild interview whether or not it was worth annexing Crimea, Putin responded: "What do you mean by Crimea?" After Bild clarified, Putin went on discuss the effects of the sanctions, saying, "the biggest harm is currently caused by the decline of the prices for energy. We suffer dangerous revenue losses in our export of oil and gas, which we can partly compensate for elsewhere."
Putin also claimed that, despite other reports, Russia's economy is stabilizing.
"Last year, the gross domestic product had dropped by 3.8%. Inflation is approximately 12.7%. The trade balance, however, is still positive," Putin said. "For the first time in many years, we are exporting significantly more goods with a high added value, and we have more than 300 billion dollars in gold reserves. Several programs for modernizing the economy are being carried out."
Despite his optimism, Putin still feels wronged by the West. Though the Minsk Protocol was signed last February, neither sides have withdrawn their troops. Pointing to one of eleven mandates in which the new Ukrainian state must create a constitution, Putin said, "The constitutional reform is supposed to give autonomy to eastern Ukraine and to be adopted by the end of 2015. This has not happened, and the year is over. That's not Russia's fault."
