Putin: High Oil Prices Could Influence Inflation in Leading Economies

ST. PETERSBURG — Russian President Vladimir Putin said at the St. Petersburg International Economic Forum (SPIEF) that high oil prices could have an impact on inflation in leading economies, including the United States.

Speaking at the forum's plenary session, Putin said, "Right now, if oil prices remain on high, it is expensive, it will actually affect the entire chain of economic interaction. Most probably, it will influence inflation of the leading economies, including inflation in the United States. And this is the basic, absolutely fundamental condition of stability of the American currency."

The 29th SPIEF is taking place from June 3-6. Its program is dedicated to shaping a new model of global development amid the ongoing transformation of the world economy.

In a separate remark, Putin addressed Russia's own economic structure, noting that the country's dependence on oil and gas revenues has decreased significantly in recent years. "The dependence of the Russian economy and the Russian budget on oil and gas revenues declined significantly in recent years — not during the time related to sanctions but simply over the recent years, in a natural way," he said.

Putin added that while the oil and gas component of Russia's GDP was above 40% previously, it now stands at about 23%. "The difference is tremendous," he stressed.