Putin Boasts of Russian Gains in Ukraine as Economy Slows Under Sanctions

Russian President Vladimir Putin on Friday hailed his army’s “advances along the entire line of contact” in Ukraine, even as the Russian economy slows sharply under nearly four years of war and Western sanctions.

Speaking during the annual call-in press conference – a Moscow staple of his 25-year rule – Putin said Russia’s gross domestic product (GDP) is expected to grow by only 1% this year – one-fourth of last year’s growth.

“These are deliberate actions by the government and the Central Bank, aimed at controlling inflation. Slowing economic growth is a conscious step, a price paid to maintain the quality of the economy,” he said.

Since launching the invasion in February 2022, Putin’s war has become Europe’s deadliest conflict since World War II, killing thousands on both sides.

Criticism of the war is strictly banned – opponents are jailed, exiled, or killed – and millions of citizens submitted questions that were carefully screened before being broadcast at Friday’s press event on giant public screens across Russia.

While replying to questions – both from journalists and Russian citizens – Putin claimed Russian forces are capturing Ukrainian cities one after another and that the enemy is retreating.

“Our troops are advancing along the entire line of contact… the enemy is retreating in all directions,” he said. “Immediately after our forces drove them out of Kursk land, the initiative completely passed into the hands of the Russian Armed Forces.”

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“I’m sure that before the end of this year we will still witness new successes,” he added, listing Kupiansk, Volchansk, Krasnyi Lyman, Sloviansk, and Kostyantynivka as cities under Russian control or in the crosshairs of Moscow’s forces. 

Putin framed both his war and economic policies as necessary for national strength. “We are taking all steps to protect our country and secure our future.” 

Putin’s remarks came as the EU and the United States push for a diplomatic deal to end the war, which Kyiv and Western allies fear could force Ukraine to cede territory to Moscow.

He warned of “severe” consequences if Europe uses frozen Russian assets to fund Ukraine’s defense. Earlier this week, he called EU leaders “piglets” and reiterated that Moscow would seize the rest of eastern Ukraine by military means if diplomacy fails.

On the economy, Putin claimed Russia is “stable” despite sanctions and inflation. “Our economy is functioning normally, and compared to sluggish growth across Europe, we are doing well,” he said.

Analysts, however, warn that Russia is teetering on the edge of a recession, with GDP growth hovering just above zero.