Russian President Vladimir Putin on Thursday warned that the U.S.-Israel war targeting Iran risks triggering global economic disruption comparable to the COVID-19 pandemic, citing mounting damage to international production and logistics chains.
Speaking at the plenary session of the Russian Union of Industrialists and Entrepreneurs' congress in Moscow, he said the Middle East conflict is causing significant damage to international production and logistics chains.
"Entire industries related to the extraction and processing of hydrocarbons, metals, the production of fertilizers, and many other goods have come under attack," he stated.
"There are already assessments that compare them to the coronavirus pandemic. And, as I recall, the pandemic significantly slowed the development of all regions and continents, without exception," he emphasized.
Putin warned the Russian government and oil and gas companies against attempts to "squander" revenues from rising oil prices.
"Now that the prices of our traditional exports are rising and markets are volatile, there may be a temptation to take advantage of the situation, get windfall profits, and, as they say, squander them, use them for dividends, or, as far as the state is concerned, inflate budget expenditures and budget spending," he said.
Putin warned that oil markets could swing in the opposite direction and called for "moderate conservatism" in spending.
Commenting on the situation in Russia, the Russian president said that the country, despite difficulties and restrictions, is managing to maintain macroeconomic stability.
Russia, in order to meet the challenges of the time, must be strong and united, as the situation in the world has shown the consequences of renouncing sovereignty, he said.
"Without sovereignty, it is impossible to protect one's fundamental interests. And this applies to all areas, including the development of transport, logistics, and financial infrastructure," he stressed.
