Russia’s public finances are generally balanced, but it has had to increase defense spending to strengthen its security, Vladimir Putin said in a speech at the St. Petersburg International Economic Forum, a landmark event in Russia.

Putin’s main statements:

• Positive macroeconomic trends are gaining momentum and strength. In April of this year, the gross domestic product grew by 3.3% year-on-year, and will add more than one percent by the end of the year.
• I beg, after all, according to the IMF – by 0.7%, but in my opinion, and I agree with those of our experts who believe that the growth will be even higher, somewhere up to 1.5%, or maybe even almost 2%.
• And this will allow our country to keep its place among the first economies of the world.
• We conducted a responsible and balanced budget and monetary policy. Their effective combination made it possible to achieve minimum levels of unemployment, as well as inflation, which is currently lower in Russia than in many Western countries, both in the Eurozone and in other regions, (and) close to the historical minimum of 2.9%.
• Unemployment is 3.3%. It has never been so low in our history.
• Russia is more or less managing to cover its own needs, and about 90,000 new businesses have been registered. I don’t think it’s a secret, when I talk to Russian businessmen, they emphasize that Western firms should not come back.
• At all these international economic forums and meetings, my main request was that Russian enterprises should not allow Western companies back.

Russia took unprecedented security measures to host the International Economic Forum in St. Petersburg, and the Kremlin justified the precautions by saying that “the enemy is acting boldly” and “without shame.”