UPDATE - EU's policy on gas prices 'madness’: Putin

ADDS MORE REMARKS FROM RUSSIAN PRESIDENT

By Burc Eruygur and Emre Gurkan Abay

ISTANBUL/MOSCOW (AA) - Russian President Vladimir Putin called the European Union’s policy on gas prices "madness" Thursday and rejected all claims against Moscow on the matter.

At a meeting of the country's Council for Strategic Development and National Projects, Putin accused Western countries of declaring an "economic war" on Russia.

“The collective West has descended on us with an economic war," he said, noting that Western countries were wrong in their calculation that the Russian economy would collapse as a result.

He said Russia was facing "unprecedented" aggression in the form of sanctions that aim to swiftly crush the country's economy by provoking a collapse of the Russian currency, the ruble, "through theft of foreign exchange reserves" and by triggering "destructive inflation."

Putin added that Moscow intends to reorient its energy supplies to new fast-growing markets such as Asia, the Middle East, Latin America and Africa.

"The EU continues to consume our goods and services while holding back flows. The situation of such imbalances cannot continue indefinitely. What should we do? We will look for other, more promising partners in actively growing regions of the world economy. These are Asia, the Middle East, Latin America, Africa," he said.

He also specified the East as a focal point for the reorientation of Russian gas, which he said would expand to 88 billion cubic meters by 2030.

"An important step to reduce the impact of sanctions and other hostile actions against Russia will be the development of port and pipeline infrastructure in the south and east, including increasing the export of natural gas. Implementation of such projects...will allow increasing gas supplies to the East to 48 billion cubic meters by 2025 and to 88 billion by 2030," he said.

Pointing to the “potential” of Türkiye in the matter, the Russian president also evaluated the current situation regarding the natural gas center that is planned to be established there in the coming months.

The electronic platform for trading in the natural gas center may be established in the coming months, he noted.

“The price of natural gas for European consumers will be largely determined at the center,” Putin said, adding: “It's crazy what's happening in Europe's own centers.”

“And now they're trying to make us look guilty for what they did with their own hands,” he added.

Putin said they were able to stabilize the situation thanks to efforts by the Russian government, the Central Bank of Russia and the entire region.

"By the end of the year, it is predicted that the Russian economy will downsize by 2.5%," he said.

Putin also said that despite the sanctions, exports of Russia’s main goods to the EU increased 1.5 times in the first nine months of the year as well as its total exports by 42%.

“The trade surplus is also in our favor at the level of $138 billion,” he said.

“Europe is holding back exports while continuing to consume our goods and services. Such an imbalance cannot continue forever,” he added.