Russian President Vladimir Putin at the Russia Calling! 6th Annual VTB Capital Investment Forum at the World Trade Center Moscow. (Photo: Reuters)

Putin said the factors are a deficit-free budget, considerable reserves, and a healthy balance of payments. Putin described the increase in August and September inflation rates as temporary results of Russia’s retaliation against Western sanctions. He forecast the 2014 inflation to be around 8% due to price hikes of several kinds of food - last year’s rate was 6.5% - but the rise will not impact social policies, he said.

Putin said external restrictions will encourage Russia to boost economic growth, overhaul its industry and infrastructure, generate more jobs, and improve people’s living conditions. He noted that in order to renovate the economy and infrastructure, Russia will tap its own financial capability and step up cooperation with foreign investment funds and banks.

Putin said Russia agrees with WTO principles and will develop an open market economy. Russia will continue trade relations with Europe but cooperation with Asian countries, especially China, will be its top priority. Russia will expand and diversify foreign economic ties with a focus on investment, trade, technology, and partnership with Latin America, Asia-Pacific, and BRICS – the five biggest emerging economies.