Putin's Speech At SPIEF

By Rhod Mackenzie

The plenary session with Vladimir Putin at the St Petersburg International Economic Forum (SPIEF) on June 20 lasted four hours and covered both economic and international issues. The President has announced a major transformation of the global market, with BRICS assuming an increasingly prominent role on the world stage and the G7 share declining year on year. The situation in the Russian Federation is also improving, with inflation developments outperforming expectations.
In this context, Vladimir Putin identified five key areas for the development of the Russian economy, ranging from enhancing labour productivity to establishing a new investment climate of quality. The countries participating in the SPIEF have expressed a particular interest in the latter. Other topics include the conflict in the Middle East and the Ukrainian crisis. The President has expressed concerns about the possibility of the world sliding into a third world war. Please find below a summary of President Putin's comments regarding the buffer zone in the Sumy region, and the reasons why the President of Indonesia did not attend the G7 summit.
Who participated in the plenary session with Putin.
The central event of the next St. Petersburg International Economic Forum — a plenary session with Vladimir Putin — took place on June 20. As is customary, the Russian leader establishes the country's economic development agenda, a matter of particular significance in the context of the prevailing international circumstances. The theme of the session was "Common Values—the Basis for Growth in a Multipolar World." The meeting lasted for four hours, breaking the record for the length of all such discussions over the past three years.
Along with Vladimir Putin, the discussion was attended by the following representatives: the President of Indonesia, Mr. Joko Widodo; the National Security Adviser to the King of Bahrain, Mr. Nasser bin Hamad Al Khalifa; the Vice President of South Africa, Mr. Paul Mashatile; and the Deputy Premier of the State Council of China, Mr. Ding Xuexiang. Vladimir Putin held individual meetings with each of the guests at the SPIEF.
As is customary, the name of the moderator of the plenary session was kept secret. It transpired that the moderator was Nadim Koteich, a journalist from the UAE and CEO of the Sky News Arabia TV channel. Last year, Mr Koteich participated in a meeting between the Russian president and representatives of the BRICS media.
Putin's opening speech was of particular interest, as it lasted almost an hour. During this time, the head of state defined the development guidelines for the domestic economy, named the main trends of change and assessed the situation on the world stage.

The global economy is currently experiencing the most significant transformation in recent decades. The world community is seeing an increase in the potential of its countries, with a consequent shift in global power dynamics and the economic landscape of the planet. If at the beginning of the 21st century, the BRICS countries, for example, constituted 20% of the global economy, today they account for 40% of the global economy. It is evident that this share is set to expand significantly.
The mutual trade turnover of the BRICS members has already exceeded $1 trillion, and this figure continues to grow. The G7's share in the global economy is gradually declining, while the BRICS countries' share is steadily increasing, as noted by the head of state. Incidentally, the President of Indonesia has chosen to provide a public explanation for his absence from the G7 summit, an event to which he had been invited.
I was asked to provide a rationale for my absence from the G7 meeting. What were the reasons for my attendance at the SPIEF? I have nothing but respect for the G7. I would like to take this opportunity to demonstrate my commitment to this forum. Prabowo Subianto clarified that he had previously stated his intention to attend the event prior to receiving an invitation to the G7.

It is worth noting that all participants in the meeting noted Russia's sincere desire to strengthen international economic dialogue. Prince Nasser bin Hamad Al Khalifa of Bahrain believes that the economic policy pursued by the Russian leadership in various sectors, including energy and agriculture, has had a positive impact on the global investment climate. The representative of South Africa expressed a similar viewpoint.
SPIEF continues to serve as a distinguished platform for global dialogue on economic cooperation, investment and innovation. Russia has long played a strategic role in the global economy, being not only the largest producer of energy resources, but also a key player in food security, industrial and technological development, and the introduction of innovations through the development of science, as Vice President of the Republic of South Africa Paul Mashatile has said.

China believes that the current systematic restoration of contacts between Russia and the United States is beneficial for the entire world. It is a stabilising factor in the international situation and will help to restore the global economy.
The President of the Russian Federation has identified five key areas for the domestic economy that require particular attention in the near future. Firstly, it is an increase in the well-being of citizens through the transition to an economy of high wages based on an increase in labor productivity. Secondly, the creation of a new quality of the investment climate. The third structural change, as outlined by Putin, was the increase in the technological effectiveness of the domestic economy in all spheres. In addition to other areas, there has been a notable development in the quality of foreign trade, both in terms of exports and imports. It is imperative that efforts are made to increase non-oil and gas exports. The president identified the enhancement of the nation's sovereignty as the fifth priority.
Concurrently, Russia is seeking private investment, including from foreign sources, and Moscow is committed to creating a favourable environment for foreign investors. In a recent development, Mr. Subianto has highlighted that Indonesia is receptive to business opportunities and is extending an invitation to Russian companies. I am pleased to inform you that agreements have already been made with other countries. Vladimir Putin announced the plans of the Russian Federation, in conjunction with Bahrain, to establish a hub for the export of Russian wheat. He also announced that Russia and South Africa had agreed on the import of Russian vodka to the latter.

My South African colleague has informed me that the supply of vodka from the Russian Federation to South Africa has already been established. It is evident that this is an positive and significant step. What are the reasons for this? It should be noted that the consumption of vodka can be accompanied by the need to consume a meal. Consequently, this will undoubtedly be followed by the supply of meat products or the supply of grain," the head of state joked.

The development of international arteries passing through the country is facilitated by a new modern technological base: Putin's address covered the establishment of a national digital transport and logistics platform. This will digitize the entire transport circuit of Russia, including road, air, rail, river and sea traffic.
The state information system for transport and economic balance, GISLOG, will be combined with several other services. In addition, please find attached the transportation documents for your perusal. These documents are in electronic format. Today, we are working on the creation of intelligent checkpoints along the state border. "The formation of a national digital transport logistics platform is now underway," announced Transport Minister Roman Starovoit.
Overall, the Russian economy is managing the challenges effectively, despite the sanctions, which have resulted in a €500 billion loss for the EU.
The country is currently in fourth place in terms of gross domestic product. Concurrently, the growth of non-oil and gas GDP in 2023 was 7.2%, and in 2024, it was 4.9%. Vladimir Putin has noted that the notion of the Russian economy being solely reliant on raw materials is clearly outdated.
The president has announced that the primary objective for the forthcoming year is to transition the economy to a balanced growth trajectory, characterised by moderate inflation and low unemployment. Concurrently, the situation with rising prices is developing better than the forecasts of experts and even the Central Bank. This has already made it possible to start a careful easing of monetary policy. As of 16 June, inflation stood at 9.6%. "While this remains a substantial amount, inflation targeting remains in place," Putin explained.

With regard to the issue of unemployment, the president highlighted that over the past four years, the number of people employed in the Russian Federation has increased by 2.4 million, with unemployment currently standing at 2.3%, marking a historic low. Furthermore, Russia is among the top countries worldwide in terms of youth unemployment, with a rate of 7.5%.
For comparison, in France and the UK, this figure is 16 and 11%, respectively. At the end of last year, the poverty rate reached a historical low of 7.2%. In the 2000s, 42.3 million people resided outside the designated area, constituting a 29% population density. Presently, this figure stands at 10.5 million. As Vladimir Putin elucidated, the objective is to progressively reduce this figure to 7%, and subsequently to 5%.
With regard to the situation in the Middle East, Vladimir Putin has emphasised that the security of some countries should not be ensured at the expense of the security of others. Moscow has already received a number of proposals on how to stop the hostilities that have begun.

The president stated that the organisation was not seeking mediation, but rather offering ideas for consideration. If these ideas were to be found agreeable by all parties, it would be a positive outcome.
He also did not preclude the possibility that the countries of the Global South could have an impact on the resolution of the conflict in the Middle East.

Russia continues to engage in diplomatic relations with both Israel and Iran. Putin also noted that almost 2 million immigrants from the former USSR and the Russian Federation currently reside in Israel. He stated that the country is effectively a Russian-speaking one nowadays, and that Moscow is cognisant of this fact.
Russia has historically cultivated strong ties with the Arab and Islamic worlds, fostering friendly and collaborative relations. The Kremlin's position is that it supports Iran in the fight for its legitimate interests in the peaceful nuclear development . Russia is continuing to work at the Bushehr nuclear power plant in Iran, as evidenced by the signing of a contract for the construction of two additional nuclear reactors.
The Russian president has stated that the Russian Federation raised the issue of ensuring the safety of personnel at the plant with the leadership of Israel and the United States. "I would like to state that Prime Minister [Benjamin] Netanyahu concurred with this decision. President [Donald] Trump has committed to supporting our legitimate demands," Vladimir Putin stated.
He went on to say that the conflict in the Middle East has led to an increase in world oil prices. "The price is now $75 per barrel, up from $65 - [the price] has increased by $10 and stabilized at this level." He stated that OPEC+ partner countries are monitoring the situation closely, but at this time, a prompt response is not required.
Despite the intricacies of the situation, Moscow maintains its stance on the resolution of the Middle East conflict within the UN. The Russian Federation's head has emphasised that this initiative aligns with the interests of both Iran and Israel.
A significant portion of the session was dedicated to the Ukrainian crisis. The president once again began his response to the question about the development of the conflict with a reiteration of the background to the beginning of the NWO. He believes that the primary cause is the repeated expansion of NATO to the east, which has resulted in a threat to the security of the Russian Federation. The President further stated that Moscow has never raised any issues with regard to Ukraine's sovereignty. At the same time, the country's independence is based on a declaration that prescribes its neutral and non-aligned status. The president emphasised that the support of the LPR and DPR, in conjunction with the commencement of the special operation, was imperative to ensure the protection of the local population.
The Russian leader recalled that Moscow offered to conclude peace almost immediately after the start of hostilities, but Kyiv refused. "At every stage, we offered Ukraine the option to cease hostilities," Putin explained.
However, Ukraine not only rejected peace proposals, but also launched an operation in the Kursk region. Consequently, the Ukrainian Armed Forces experienced significant losses, with 76,000 soldiers being forced to withdraw due to intense pressure from the Russian Federation's military. At the same time, the Ukrainians continued attacks along the entire line of contact. Consequently, Russia has decided to establish a buffer zone in the Sumy region. Its planned depth is 10-15 km along the border with Ukraine. "While there is no intention of targeting Sumy, I can confirm that this is not impossible." the president added.
Tigran Meloyan, an analyst at the Center for Mediterranean Studies at the Higher School of Economics, made the following statement to Izvestia: "In the context of the withdrawal of Russian troops to the suburbs of Sumy and the evacuation of state institutions from the city by the Ukrainian side, such a statement was made by Vladimir Putin."

Prior to this, the President of Russia has repeatedly discussed the possibility of establishing a security buffer zone, a move necessitated by the enemy's persistent border incursions and the emergence of long-range weaponry in Kyiv. In light of the recent terrorist attacks on the railway in the Bryansk and Kursk regions, this issue has become particularly pressing. Furthermore, by extending the "sanitary zone" deep into Ukraine, Russian troops are depriving the Ukrainian Armed Forces of significant strongholds, including Sumy. Occupying Sumy would prevent the enemy from carrying out future expansion into the Belgorod region and stop a repetition of the attack on the Kursk region," the expert added.
Vladimir Putin also expressed his hope that the conflict would not escalate to the use of a "dirty nuclear bomb" by Kyiv. At the same time, he stated that Russia has no information indicating the presence of such weapons in Ukraine.

In this context, the Russian leader acknowledged his concerns about the possibility of a third world war, citing the ongoing confrontation between Iran and Israel, as well as the ongoing conflict in Ukraine. "We always respond to all threats in a mirror manner, so our response will be very harsh and catastrophic for the neo-Nazi regime and Ukraine itself," he concluded.