Putin Boasts of Gas Profits Despite Sanctions in Rare Video Appearance

In a rare video appearance on Tuesday, Russian President Vladimir boasted of gas profits despite sanctions imposed by the West in response to his decision to invade Ukraine nearly a year ago.

Putin chaired a meeting on economic issues via a video conference at the Novo-Ogaryovo state residence outside Moscow, attended by key senior officials from his government and Russia's Central Bank.

He said that gas companies managed to make "good profits" as world gas prices have surged due to Western sanctions.

"The production of natural gas decreased by 11.8 percent," Putin said. "Meanwhile, I should note that global gas prices rose substantially, as you know, due to the actions of Western countries, and as a result, Russian gas producers and exporters earned a good profit over the past two years."

Russian gas companies "significantly increased payments to the country's budget system," he added.

Putin also said that his country's oil production rose last year.

"Despite the sanctions pressure that has already been mentioned, Russia's crude production rose by roughly 2 percent in 2022, with production standing at 535 million tons," he said.

Russia was hit with a wave of sanctions by the international community in response to the invasion of Ukraine on February 24, 2022. The sanctions are taking a toll on Russia, although the economy has been kept afloat in part because of higher prices for its main exports of gas and oil.

In December, a price cap on the prices of seaborne Russian oil was implemented, preventing Western nations from paying more than $60 a barrel. The price cap was proposed by the G7 in September to complement an existing EU-wide ban on Russian crude oil imported by sea.

U.S. Treasury Secretary Janet Yellen said last month that the restriction would curb Russia's finances and "limit the revenues [Putin's] using to fund his brutal invasion."

Separately on Monday, European Commission President Ursula von der Leyen said the West had placed "the strongest sanctions ever" on Russia, "which leave the Russian economy facing a decade of regression and its industry starved of any modern and critical technologies."

"There will be no impunity for these Russian crimes," she added. "And, there will be no letup in our steadfast help for Ukraine and in preparing for the long-term efforts of reconstruction."

Von der Leyen said that in less than a year, Europe has "overcome this dangerous dependency" on Russian fossil fuels.

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