Putin says the current global financial system made the crisis "impossible to avert."

He says "cheap money doping and mortgage troubles in the United States have caused a real chain reaction, paralyzed the global financial system and brought global distrust to the market."

He was addressing a meeting Thursday of the main pro-Kremlin United Russia party. Putin, however, sounded confident that Russia would emerge stronger from the turmoil.

Finance Minister Alexei Kudrin said at the sidelines of the event that Russia's 2009 year budget may see a deficit of up to 1 percent, the first shortfall in years.