Putin warns of new financial crisis due to growing debts of industrialized countries

According to Vladimir Putin, the irresponsible economic policies of developed countries have exacerbated global tensions. The uncontrolled accumulation of debt increases the risk of a new global financial crisis, he warned on Tuesday.

Speaking at a virtual summit of the Shanghai Cooperation Organization (SCO), which he attended via video link from Moscow, the Russian leader referred to global dangers that could increase the "potential for conflict" in the near future.

"Geopolitical contradictions are becoming more and more acute, the international security system continues to deteriorate, and the risks of a new global economic and financial crisis are increasing against the backdrop of uncontrolled accumulation of debt in developed countries, social stratification and increasing poverty in the world, as well as deteriorating food and environmental security," Putin explained. "All these problems, each of which is complex and diverse in its own way, lead to a significant increase in the potential for conflict. Russia is experiencing all this first-hand."

He noted that under these conditions, the SCO is playing an increasingly important role in international affairs and is making "a real contribution to maintaining peace and stability, ensuring sustainable economic growth in the participating states and strengthening relations between peoples."

In June, the director of the International Monetary Fund (IMF), Alexei Moshin, who is responsible for Russia, warned that Western economies were in critical condition due to the high level of public debt. He criticized wealthy countries for having pursued irresponsible fiscal and monetary policies for years, which had triggered the current debt crisis. According to Moshin, the United Kingdom and almost all EU countries, including France, Spain, Portugal, Greece and Italy, are facing high levels of debt.

The SCO summit was opened in New Delhi in an online format under the chairmanship of Indian Prime Minister Narendra Modi. An important event is Iran's accession to the alliance.

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