By Gleb Bryanski

MOSCOW (Reuters) – Russian President Vladimir Putin urged economic officials on Thursday to capitalize on opportunities arising from global market turbulence and increasing trade wars.

Russia’s trade with the United States and the European Union has sharply declined due to sanctions related to its ongoing war in Ukraine, yet it has not suffered from U.S. tariffs imposed by President Donald Trump.

Despite the impacts of sanctions, Russia’s economy has performed better than expected during three years of conflict. However, it now braces for a period of lower oil prices—its main export—and dwindling budget revenues.

Speaking to officials, Putin remarked, “The global economic situation is becoming more complicated as commodities and financial markets experience significant fluctuations due to intensified global competition.”

He emphasized the need to not just monitor and predict changes but also to utilize emerging opportunities to develop domestic production, trade relations, and exports to strengthen the national economy.

This was Putin’s first comment on the global economic situation since U.S. tariffs were announced. He has often praised Trump’s policies while seeking peace in Ukraine.

The meeting with officials took place one day before the central bank’s board is set to decide on its benchmark interest rate, currently at 21%—the highest since the early years of Putin’s rule.

Both the central bank and the Finance Ministry, whose heads attended the meeting, warned of the potential consequences of global turbulence on Russia’s economy.

Finance Minister Anton Siluanov stated on April 23 that Russia needs to boost its fiscal reserves to cover at least three years of budget spending if low oil prices persist.

Putin acknowledged a 25% surge in budget spending during the first quarter, calling it intentional to ensure timely payments to all budget recipients.

Russia has revised its forecast for 2025-2027 oil and gas export revenues—the state budget’s key funding source—expecting a 15% drop in proceeds this year due to weaker oil prices, based on an economy ministry document.

Economic growth is anticipated to slow to at least 2.5% this year, down from 4.3% in 2024, which Putin described as a “soft landing” aimed at combating inflation that remains above 10%.

The Russian central bank cautioned this month that oil prices might remain below forecast for several years due to diminished global demand. The last board meeting occurred on March 21, before the imposition of U.S. tariffs.