Putin rejects strike truce, says Russia lost 1% of GDP

Russian President Vladimir Putin said on Thursday, October 1, that Ukrainian drone strikes on Russian oil refineries have cost the country about 1% of its gross domestic product. Speaking at the Valdai Discussion Club in Moscow, he also rejected the idea of both sides halting long-range strikes. It is an unusual admission from the Kremlin about the economic damage from Kyiv's campaign. At the same time, Putin closed off a de-escalation proposal that Washington has been pushing as diesel prices climb.lemonde+2

"Partially achieved"

"They started striking refineries and announced the goal straightforward – to inflict damage to our economy. The goal was partly achieved because according to our estimates, we lost about 1% of the GDP," Putin said at the forum's plenary session, according to Russia's state news agency TASS. He called the refineries civilian targets and said Kyiv "got a tit-for-tat response". Reuters reported his remark that Ukraine had "partially achieved its objectives". Le Monde noted that the refinery attacks caused fuel shortages across Russia this summer.tass+2

Putin said Russian strikes on Ukraine's economy had done heavy damage, and claimed that Ukraine now has "virtually no metals industry," Meduza reported. According to Le Monde, Russian attacks have hit Ukrainian steelmakers, rail supply chains and large warehouses, and have sharply limited grain exports through the Black Sea.lemonde+1

"Simply ridiculous"

Putin dismissed proposals for Ukraine to stop hitting refineries in return for Russia ending its attacks on Ukrainian ships. "We are told: 'Let them stop striking your refineries, and you will stop striking their ships.' It is simply ridiculous," he said. Asked how Russia would respond to the idea, he answered, "No". He argued that a deal would leave Russia with nothing to gain. "How is our diesel supposed to reach the global market with sanctions still in place? It can't," he said. "You have to admit, that just looks absurd". He added that the issues could still be discussed "based on mutual interests".apa+2

Putin said Russia has enough diesel for its own needs, "but it won't reach global markets because of the bans and sanctions in place against our oil and petroleum products". This week Russia extended its ban on diesel exports by fuel producers through the end of October.reuters

Pressure from Washington

The comments follow repeated calls from U.S. President Donald Trump for Ukrainian President Volodymyr Zelensky to stop striking Russian refineries. Trump has blamed the attacks for a global diesel shortage. In mid-September, Trump said Moscow and Kyiv had agreed to stop hitting energy facilities, but that was never confirmed. Reuters reported that U.S. diesel prices have hit records above $$6.50$$ dollars a gallon. The wars in Iran and Ukraine are limiting fuel supplies, which poses a political risk for Trump ahead of the midterm elections.meduza+1

At the same forum, Putin warned that Moscow would consider using all available weapons if Kaliningrad were attacked or blockaded. NATO Secretary General Mark Rutte rejected the suggestion that the alliance threatens the region.united24media