The president Vladimir Putin called her billionaires today Russia put patriotism over profit, telling them to invest at home to bolster the economy against Western sanctions.

Speaking privately to the Russian business elite for the first time since February 24, 2022, when he sent troops into Ukraine on February 24 last year, Putin told them that their role is not only to make money, but to to support society.

“A responsible businessman is a real citizen of Russia, of his country, a citizen who understands and acts in his own interests,” Putin said.

“He does not hide assets abroad, but registers a business here in our country and does not become dependent on foreign authorities.”

He welcomed the “lofty mission” of businessmen who care about the workers and direct their talents not only for profit, but also for the common good.

Meeting attendee profile

Among the meeting participants were billionaires Oleg Deripaska, Vladimir Potanin, Alexei Mordashov, German Khan, Viktor Vekselberg, Viktor Rashnikov, Andrey Melinchenko and Dmitry Mazepin, whose interests range from metals and banking to fertilizers.

Putin said he wanted to hear their views on how to build a more vibrant economy that would lead to “a marked improvement in the quality of life for people across the country.”

Although he received a standing ovation, he sent a stern message to Russia’s richest people: they should think more about the needs of the country, and not about their own benefit.

When he met with them at the start of the war, Putin told them he had no choice but to launch his “special military operation”, effectively forcing them into a public display of tacit consent.

Many tycoons known as oligarchs have subsequently been sanctioned by the West, which Putin has used as an argument that it is safer to invest in Russia. Last month, he told business leaders that ordinary Russian citizens did not sympathize with the seizure of their yachts and mansions.

“Western sanctions didn’t work, but…”

The President of Russia said today that the attempt to destroy the Russian economy, as he said, with sanctions has failed. However, he stressed that the country cannot afford to relax.

“I understand very well the threats that are taking place, and what the soothsayers are telling us, saying that Russia will have problems in the medium term. Yes, this is a threat that we must keep in mind,” he said.

“I urge you not to wait for these negative effects to materialize in the medium term… You must act now.”

A clear sign of growing demands from big business is that the government, faced with a widening budget deficit, plans to raise about 300 billion rubles ($3.9 billion) through windfall tax, although this will not affect oil. gas and coal companies.

Economy Minister Anton Siluanov said that the tax would be set at about 5% of excess profits, TASS reports. The fee will be legally introduced from 2024, he said, but the finance ministry expects companies to make payments this year as well.

Russia is hoping for record GDP growth this year after a 2.1% contraction in 2022. Economics Minister Maxim Reshetnikov said GDP and investment would increase this year, but declined to give estimates.

The economy has proven surprisingly resilient to sanctions last year, but a return to pre-war levels may be a long way off as more government spending goes to the military.

Putin effectively militarized much of the economy, with the defense industry working around the clock to produce weapons, ammunition, and equipment.

^{Source: APE-MEB, Reuters}