War Economy

Putin: 'We do not want Ukraine's capitulation' but 'Russians and Ukrainians are one people'

The Russian president's speech at the St. Petersburg economic summit

Il Presidente russo Vladimir Putin pronuncia un discorso durante una sessione plenaria del Forum economico internazionale di San Pietroburgo (SPIEF) a San Pietroburgo, Russia, 20 giugno 2025. REUTERS/Anton Vaganov

2' min read

2' min read

President Vladimir Putin, in response to questions at the St. Petersburg Economic Forum, said that Russia 'does not seek the capitulation of Ukraine, but only the recognition of the realities that have emerged on the ground. Russians and Ukrainians are one people, and in this sense all of Ukraine is ours'. Quoted by the Interfax news agency, Putin also said he "does not rule out" the possibility of his troops capturing the town of Sumy in their advance to create a security zone to prevent Ukrainian shelling of Russian territory.

In economic terms, Russia should "under no circumstances" enter recession, saidPutin at the summit. "Some specialists and experts point to the risk of stagnation and even recession. We must not allow this to happen under any circumstances," Putin said. His words come after yesterday's speech at the conference by Economy Minister Maxim Reshetnikov, who said that the country could be on the brink of a recession, but that it will be possible to avoid this scenario, "if everything is done correctly" by the Russian government.

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The Russian president pointed out that manufacturing industries have been growing steadily, allowing the country to reduce its dependence on oil and gas exports. "The perception of the Russian economy as commodity-based and dependent on hydrocarbon exports is clearly outdated," Putin said. The Russian president also praised the country's economic outlook, saying that it had managed to curb inflation and ease its dependence on energy exports. "I would like to point out that in the first four months of this year Russia's GDP increased by 1.5 per cent year-on-year, with growth accelerating to 1.9 per cent in April," he stressed in his speech. As for unemployment 'in Russia it remains at the lowest level of 2.3%'.

Russian economy faces challenge of technological progress

The Russian economy, Putin emphasised, must face the challenge of technological progress. 'The Russian economy must become more technologically advanced. And this is not a wish, it is an objective need of today and tomorrow. A challenge we must accept if we want to become stronger. And we want to. We will have to launch a new phase of the country's technological development at full speed,' he concluded.

"As for the payment structure, work is being done with colleagues from Brics to create independent payment systems". "A digital rouble project is being implemented in Russia and it is necessary to accelerate development in this area," Putin added.

"We will modernise military forces"

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In another passage, Putin announced that Russia intends to modernise its military installations and equipment: 'We will use a new technological base to increase the combat capability of the Russian Armed Forces, modernise the military infrastructure and equip them with state-of-the-art technologies, weapons and equipment, which have proven their effectiveness in combat,' he said. In this regard, Putin reiterated that he wanted to "develop military-technical cooperation with friendly countries, and this is not only about the supply or modernisation of equipment and weapons, but also about joint development, personnel training, the establishment of companies and production facilities," he concluded.

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