Shrinking trade hurts both Russia and EU: Putin

Russian President Vladimir Putin has said that shrinking trade between Russia and the European Union (EU) harms both economies.

He attributed the decline in trade to the falling crude prices and unfavorable financial situations, Xinhua reported Monday.

No one gains from the current trade decline between Russia and its major European partners, Putin said.

Declining trade turnover, caused by falling global fuel prices and an unfavorable financial situation limited possibilities for the Russian companies' development, he said.

While Russia's trade with EU decreased by 4.3 percent, its trade with the US increased by 7 percent, the Russian president said, adding that trade with the Asian-Pacific countries was also on the rise.

Noting that Russia's capital outflow will reach $120-130 billion in 2014, Putin said that the trend was possibly "inward-oriented" as 50 percent of the current capital outflow was due to currency exchange operations done by Russian citizens. "So that money actually still stays in Russia," he added.

"Despite the challenges we are facing, we will overcome all difficulties and develop further," Interfax news agency quoted the Russian president as saying.