(VOVworld) - Russian President Vladimir Putin has said Russia’s economy hasn’t fallen into deep crisis despite Western sanctions and restrictions to access international capital market, and a decline of the domestic demand.

Russian President Vladimir Putin is seen on a giant screen at the St. Petersburg International Economic Forum 2015 (SPIEF 2015) on June 19. (Photo: rferl.org)

Addressing the plenary session of the ongoing St. Petersburg International Economic Forum (SPIEF) on Friday, Putin said Russia will improve its business environment and create better conditions for investors. Regarding the economic relations between Russia and the world, Putin underlined the need to consolidate links in the Eurasian Economic Union to develop Russia’s Far Eastern region and strengthen economic cooperation with countries in Asia-Pacific.

He said recently the Union signed a free trade agreement with Vietnam and affirmed that Russia will cooperate with other countries in the principle of equality and openness to all to promote its economic development. The same day, the EU extended its economic sanctions against Russia for 6 months more due to Russia’s role in the 2014 annexation of Ukraine's Crimea territory.

The EU’s decision was issued a few days following the imposition of a series of punitive measures against Moscow' due to its role in the Ukraine conflict. The economic sanctions will target Russia’s banks, oil and gas sector, and defense.