At a meeting with cabinet members, Russian President Vladimir Putin called for increasing the amount of high-quality but inexpensive Russian products on the market. Putin said that profiteering has led to a decline in living standards in the country, and has produced an unjustified increase in the cost of products, goods, and services.

“Today, unreasonable, frankly profiteering price hikes on goods and services are leading to lower living standards. We need to use all market instruments available to hold back the prices and increase the share of low-cost, high quality local goods,” Putin said.

At the same meeting, Putin said that the authorities should prepare for a prolonged period of low oil prices and sanctions against Russia.

The country’s economic situation has deteriorated significantly in part due to western sanctions in response to Russia’s military aggression in Ukraine.

The continued drop in oil prices has also had a devastating effect on Russia’s economy, which is heavily reliant on natural resources, with oil and gas accounting for 60% of all Russian exports. Experts have concluded that Russia loses $2 billion in revenue for every dollar fall in the price of oil.

The IMF has predicted that the country’s cumulative output loss could amount to 9% of GDP over the medium term due to current oil prices and sanctions against Russia.

Meanwhile, President Putin has assured Russians that the country’s economy has already passed the peak of the crisis.

According to a Levada Center survey, more than 40% of Russians think that the recession will be prolonged, and 25% are confident that the crisis will end soon.

  Russia, Economy of Russia, Sanctions, Oil Prices

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