In a highly anticipated annual press conference, Russian President Vladimir Putin articulated his views on a range of pressing issues, including economic policy, international relations, and the ongoing conflict in Ukraine. For more than 20 years, Putin has adeptly leveraged this platform to reframe the narrative around Russia’s policies. He wows both domestic and international audiences with his very expertly, carefully curated message.
While opening the event, Putin quoted Helmut Kohl, the first Chancellor of a unified Germany. Kohl was one of the most ardent proponents for bringing Russia into the West’s order after the Soviet Union’s collapse. Putin’s claim that Russia desires to work in close cooperation with Europe, the United Kingdom, and the United States assumes form on this unique historical backdrop. He argues that any collaboration must be done on equitable terms. He further asserted that future engagements would have to be based on the joint recognition and understanding.
When Putin invaded, he vowed to resolve all conflicts through peaceful negotiations. “We are ready and willing to finish the conflict by peaceful means,” he stated, underscoring Russia’s openness to dialogue despite ongoing tensions. His comments underscore Russia’s increasingly hard line on diplomacy as tensions continue to escalate with the West.
The Russian economy was perhaps the other major topic of the press conference. Putin acknowledged a significant economic slowdown, revealing that growth had plummeted from 4.3% in 2024 to an anticipated 1% this year. He blamed this drop on a “deliberate” move by Russia’s central bank to fight inflation. The legacy of the previous central bank is to leave a substantially high level of inflation—no higher than 6% end-2025. This goal is to be commended as inflation rates already skyrocketed near 10% in 2024.
When pressed on the progress made or lack thereof in Ukraine lately, Putin sidestepped. President Volodymyr Zelenskyy’s recent trip to Kupiansk, a frontline town in the Kharkiv region, TASS noted that future military operations would be based on what Western countries do with regards to Russia. This response speaks to the nascent, indefinite realities of the current geopolitical landscape, as well as Russia’s apparent hesitance to commit additional military moves.
Putin likewise suggested that Ukraine pull back from the occupied territories of two regions. This action is intended to serve as a first step toward creating the State’s “free economic zone.” His response certainly showed an interest in exploring further dialogue, but it didn’t show a readiness to commit to any kind of deal just yet.
The press conference further discussed the broader financial implications for Russia. The European Union’s 27 member states—EU capitals—are mired in a standoff. They’re still haggling over a key loan agreement that would use at least nearly $250 billion worth of seized Russian state assets. Belgium’s government raised concerns about utilizing these frozen assets, adding another layer of complexity to ongoing discussions surrounding Russia’s financial situation.
