Putin: Russia's Economy No Longer Depends On The Oil And Gas Sector

Russian President Vladimir Putin/PHOTO via Instagram @russian_kremlin

JAKARTA - Russian President Vladimir Putin said the Russian economy no longer depends on the oil and gas sector.

When speaking at the St. International Economic Forum. Petersburg (SPIEF), Putin explained that the growth of Russia's GDP by 4 percent per year was actually more supported by the non-oil and gas sector.

Russia's non-oil and gas GDP growth in 2023 was recorded at 7.2 percent. In 2024 (this sector) grew 4.9 percent, almost 5 percent. So these figures are more convincing and more basic than GDP in general, "said Putin, who spoke on the same stage as President Prabowo Subianto as reported by ANTARA, Saturday, June 20.

"In other words, the role of sectors related to raw products in the dynamics of the Russian economy is no longer at the forefront," he added.

According to Putin, today, the oil and gas sector is considered unfavorable.

Over the past two years, he said, Russia has recorded more profits from the agricultural, industrial, general work, construction, logistics, services, finance, and information technology sectors.

In addition, the support of millions of businessmen in Russia has helped to encourage the country's economy to develop rapidly, solidly, and in various ways.

Images of the Russian economy that are only related to exports of raw products, are no longer actual. That is history, because our reality has changed," Putin said.

He claims that based on GDP volume, Russia occupies the fourth highest position in the world, and the first position in the European region.

"But this alone is not enough. It is important for us to continue to maintain our status as one of the strongest (world) economies," said Putin.

"We need to create a conducive climate for the domestic business world, with the support of friendly countries that contribute resources. Our important task is also to expand the industry, to work together to ensure that this economic transition process becomes more balanced," he added.

Putin further explained a number of other important achievements in Russia's economy, including inflation which decreased to 9.6 percent; the young unemployment rate was 7.5 percent; and the poverty rate was 7.2 percent in 2024.