Putin says positive dynamic in military operation in Ukraine

Russian President Vladimir Putin said the special military operation was showing a positive trend and that he hoped Russian soldiers would deliver further gains after Soledar.

"The dynamic is positive," Putin told Rossiya 1 state television. "Everything is developing within the framework of the plan of the Ministry of Defense and the General Staff."

"And I hope that our fighters will please us even more with the results of their combat," Putin said.

Russia said on Friday that its forces had taken control of Soledar in eastern Ukraine, in what would be a rare success for Moscow after months of battlefield reverses.

After the West imposed the most severe sanctions in modern history over the war in Ukraine, Russia's economy has shown remarkable resilience but the world's biggest producer of natural resources is now turning increasingly towards China.

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"The situation in the economy is stable," Putin said. "Much better than not only what our opponents predicted but also what we forecast."

Putin said unemployment was a key indicator.

"Unemployment is at a historic low. Inflation is lower than expected and has, importantly, a downward trend."

Russia's economy contracted in 2022 under the weight of sanctions, but way less than most economists forecast. The $2.14 trillion economy is forecast by the Russian government to contract by 0.8 per cent in 2023.

Russia's 2023 budget is based on a Urals blend price of around $70.1 a barrel, though Russia's main blend is currently trading at below $50 a barrel.