Next journalist from RIA Novosti notes that the budget is projected to be in the black this year and asks if maybe taxes are too high -- noting raised VAT and other taxes and fees. Putin admits that Russia is primarily an energy exporter and gets most of its revenues from export of oil and gas. Again emphasizes the "global" financial crisis to explain high levels of spending in past years. Says VAT was lower than rates in "many countries," and was raised to their levels while maintaining subsidies for medicines, children's goods, and other products. Putin then talks about the need to conduct policy to keep inflation down and says that "in general" the government's policies have been appropriate and balanced.
Roman Dobrokhotov, editor of The Insider, says "honored" to be only journalist not allowed into the Putin press conference. Tells Ekho Moskvy
Says no reason given for his not being admitted.
Question from state Channel One television. Says "in our Soviet childhood" we were afraid of nuclear war. Now we are again hearing such fears again. How do you feel about that?
Those following the Putin presser on Twitter are not all convinced on the Russian leader's optimistic predictions, like this one, that consumer prices will rise a bit next year before, Putin says, falling.
Putin says nuclear war must be considered impossible since it would lead to the destruction of the planet. Says the growing danger of war is caused by the collapse of the international arms-control regime. Begins by mentioning U.S. withdrawal from the ABM treaty. Brags about the great weapons systems that Russia "was forced" to develop. Insists Russia is trying to maintain parity. Then he mentions U.S. threats to withdraw from the INF treaty. Says these things are bad for all of humanity. Putin also mentions a "tendency" to reduce the threshold for use of nuclear weapons, including the development of tactical nuclear weapons. Also says it is important not to use ballistic missiles for nonnuclear purposes, which could trigger a nuclear war. Says that discussing such things is dangerous and moves away from common sense.
Takes a question from an Izvestia reporter about the fate of the Ukrainian sailors detained recently in the Kerch Strait. Asks if Ukraine's "provocation" wasn't a success because Russia detained them. Putin thanks the reporter for recognizing that the conflict in the Kerch Strait was a "provocation." Then says that provocations are bad. Repeats claims that Ukrainian President Petro Poroshenko did it in order to improve his popularity ahead of the presidential election. Claims he is sacrificing Ukraine's national interests for his own. Says Poroshenko was willing to let some of his sailors die.
Next question is from a Ukrainian journalist (after Putin makes him promise not to make a scandal). Asks how much Russia is spending to support the separatist formations in eastern Ukraine. And about possible exchange of prisoners between Ukraine and Russia. Asks about the prospects of direct talks between Poroshenko and Putin.
Putin talks about the "suffering" of eastern Ukraine and criticizes the "blockade" of the separatist regions. Says Russia is providing "humanitarian aid" to the people of the region and will continue to do so. Criticizes Kyiv's supposed attempt to resolve "political questions" by force. "We want peace and prosperity across all of Ukraine, including Donbas," Putin says. Talks about "natural" economic relations between the two countries and repeats claims that Poroshenko is ignoring the interests of his own people.
- By Luke Allnutt
The Ukrainian journalist who asked the question is called Roman Tsymbalyuk. Every year, he asks a question about the war in Ukraine.
