**Russian President Putin Admits Sanctions are Affecting Economy**
Russian President Vladimir Putin has acknowledged that international sanctions are affecting the country’s economy. He made this statement during his annual press conference on December 19, according to Russian news agency TASS.
Despite boasting about a strong and resilient economy, Russian officials have largely downplayed the importance of Western sanctions imposed over the invasion of Ukraine. However, Putin now agrees that these sanctions are having an impact, particularly when it comes to inflation and prices in Russia.
**Inflation on the Rise**
Russia’s annual inflation rate has risen to 9.2-9.3%, with the ruble value fluctuating around 100 to the US dollar. To curb inflation, Russia’s central bank has raised interest rates to a record high of 21% since the early 2000s.
**Experts Question Central Bank’s Actions**
Putin suggested that some experts believe the central bank could have used other tools more effectively and earlier to control inflation. The bank began raising interest rates in the summer, but these experts think this should have been done sooner.
**Economic Sectors Affected**
The combined effect of sanctions and inflation is starting to threaten various sectors of the Russian economy, including automotive, aviation, and retail. This comes as US President-elect Donald Trump pushes for negotiations in Ukraine, although Moscow shows little interest in peace talks.
Read More @ kyivindependent.com