Vladimir Putin: “The consequences of the war in Iran can be compared to the Covid-19 epidemic”
Russian President Vladimir Putin said Thursday that it is difficult to predict the consequences of the conflict in the Middle East, but he says some experts have compared its potential impact to that of the COVID-19 pandemic. He urged prudence in spending, even if Russia is one of the beneficiaries of the war, due to the increase in oil prices and the lifting of sanctions in the field.
According to the Kremlin leader, the conflict is causing considerable damage to international logistics, production and supply chains, at the same time exerting intense pressure on companies in the hydrocarbons, metals and fertilizers sector, notes Reuters, according to News.ro.
“The consequences of the conflict in the Middle East remain difficult to predict with precision,” Putin told businessmen in Moscow.
“It seems to me that even those involved in the conflict cannot foresee anything, and for us it is even more difficult”, he added. “However, there are already estimates that these consequences can be compared to the coronavirus epidemic,” Putin said.
“Let me remind you that this has considerably slowed down the development of all regions and all continents, without exception,” he emphasized.
Russia one of the main beneficiaries of the war in Iran
On the other hand, Putin warned that Russian businesses and the government should take a cautious approach when deciding how to spend the windfall generated by the rise in oil prices as a result of the war in the Middle East.
The sudden increase in oil prices made Russia one of the main beneficiaries of the war that the United States and Israel launched against Iran on February 28.
“Now that the prices of our traditional exports are rising, but the markets are in turmoil, there could be a temptation to take advantage of the situation,” Putin told the businessmen.
He added that this temptation could involve squandering additional revenues, distributing them in the form of company dividends or, in the case of the state, expanding budget expenditures.
“We have to remain cautious. If markets swing in one direction today, they could swing in the other tomorrow,” he warned.
“A moderate degree of conservatism and a moderately conservative approach is needed, both in the corporate sector and in public finances,” the Kremlin leader pointed out.
