Russian President Vladimir Putin on Friday held his annual end-of-year press conference, addressing key issues ranging from the war in Ukraine and relations with the United States to NATO expansion, Russia’s economy, and Western sanctions. Speaking in Russian, Putin’s remarks were translated by Reuters.
Ukraine Peace Talks: ‘We Are Ready’
Putin said Russia remains open to a peaceful resolution of the Ukraine conflict, though he questioned Kyiv’s readiness for meaningful talks.
“So far, we don’t really see such readiness from Ukraine,” he said, adding that Moscow has nonetheless observed “certain signals” from Kyiv indicating openness to dialogue. Putin reiterated that Russia is willing to end the conflict peacefully, based on principles he outlined in June 2024, provided the “root causes” of the crisis are addressed.
US Peace Proposals and Trump’s Role
Putin acknowledged what he described as sincere efforts by former US President Donald Trump to broker peace.
“President Trump is making serious efforts to end this conflict,” Putin said, claiming that Moscow had agreed in principle to proposals discussed during a meeting in Anchorage. He rejected claims that Russia was dismissing peace initiatives, stating that Moscow had agreed to compromises, even though they were “not easy decisions.”
According to Putin, responsibility for further progress now lies with Ukraine and its Western backers. “The ball is entirely in the court of our Western opponents, primarily the leaders of the Kyiv regime and their European sponsors,” he said.
NATO Expansion and Security Concerns
Putin once again cited NATO’s eastward expansion as a core security concern for Russia.
“The movement of NATO military infrastructure toward our borders raises legitimate concerns,” he said, insisting that Russia is not denying countries the right to choose their own defence arrangements but arguing such choices should not threaten others.
He accused Western nations of breaking earlier commitments and said Russia seeks a “reliable security system” in Europe to ensure lasting peace.
Ukraine Elections and Security Guarantees
In a notable comment, Putin said Russia would consider steps to ensure security if Ukraine were to hold elections.
“We are ready to consider ways to ensure election security in Ukraine, at least by refraining from attacks deep into territory on election day,” he said. Putin also argued that millions of Ukrainians living in Russia should be allowed to vote, adding that elections are essential for Ukraine’s leadership to be considered legitimate.
On Allegations of Repression
Addressing criticism of Russia’s “foreign agents” law, Putin defended the legislation, saying similar or harsher laws exist in Western countries, including the United States.
“Our law only requires declaring funding sources if you are engaged in political activity,” he said, rejecting claims of repression or criminal persecution.
Prospect of War With Europe
Putin dismissed suggestions that Russia plans to attack European countries as “nonsense.”
“It’s not we who are fighting you. It’s you who are fighting us via Ukrainian nationalists,” he said, reiterating that Russia would halt hostilities if its security interests were respected.
Situation on the War Front
Claiming military momentum, Putin said Russian forces have seized the strategic initiative following operations in the Kursk region.
“Our troops are advancing along the entire line of contact,” he said, adding that Ukrainian forces are retreating in all directions, albeit at varying speeds.
Western Seizure of Russian Assets
Putin strongly criticised European efforts to seize Russian assets, calling them “daylight robbery.”
He warned that such actions could undermine trust in the euro zone and the global financial system. “No matter what they steal, they’ll have to give it back eventually,” he said, adding that Russia would defend its interests through legal avenues.
Economy, Budget and Inflation
Putin said Russia’s GDP growth has slowed to around 1%, describing it as a deliberate move to curb inflation.
Inflation is expected to fall below 6% by year-end, while real wage growth is projected at 4.5%. He added that Russia’s federal budget deficit stands at 2.6% of GDP and is expected to narrow further in the coming years, noting that public debt remains among the lowest globally.
VAT Increase and Central Bank Policy
Defending a planned increase in value-added tax (VAT), Putin said it was the most transparent way to balance the budget.
He also backed the Central Bank’s cautious approach to interest rate cuts, stressing its independence and the need to prevent inflation from rebounding, even if investment activity remains subdued.