so on the show pakistan approves a tax on luxury goods in exchange for unlocking and i am as bail out of one danish cities there's, it's going full steam ahead towards climate neutrality wheeler and how this is dw business. i'm janelle dumas on. welcome president. vladimir putin said western sanctions for russia's invasion of ukraine had failed and insisted bratia had all the resources it needs to support the economy. in a state of the nation addressed to russia's 2 houses of parliament. hooton's said he would restructure the economy and focus on domestic demand to offset pressure from the west. last year is 2 point one percent decline in brush as g d p was less severe than forecast. he also said moscow was working with other countries to build new payment systems and financial architecture boot, and also emphasize how russia plans to invest in annexed regents.

joining me now is demetrika, eventually founder of trade. explain a good to have you on with us, dmitri. now everyone wants to talk about how we said the west was overrun with pet files, but we're concentrating on the economy today. what stood out to dmitri so it's very clear that putin is trying to position russia as buttoning down the hatters and settling him for the long haul. he talked about projects with time horizons in the 20 thirty's that are about not just substituting or western demand with domestic demand. but substituting western technology and western production with unspecified new markets and with domestic production. it is to put it very, very mildly, a very ambitious or a very ambitious plan. he is also curious in the west of wanting to be done with

russia. is that not in fact what he wants it's, it's very hard to, it's very hard to understand this. i think prior to the invasion, the west probably didn't want to spend too much time thinking about russia, but we're certainly very comfortable doing business with russia. there was an incredibly, truly profitable arrangement. there was a lot of business links. i think at this point, the westwood still very much prefer not to think about russia, but it has moved itself to a point where the west it can survive without dependency on russian natural resources or agriculture. so i think in that sense he is correct in some ways. well turning inward, he also alluded to economic recovery programs for the quote, new subjects of the federation. meaning of course the areas that is our next is us anchored in any kind of reality?

i think it's important to remember that the russian bureaucratic state is dysfunction, all corrupt and broken in ways that it is difficult for westerners to even wrap their minds around. um, it is entirely possible that they will allocate some resources to this and that they will certainly be kind of potemkin, village up projects where they will demonstrate how much they are helping. they will build individual buildings, though these will crumble in the occupied areas of lou hands and in ask to prove how much they are helping. but in terms of actually rebuilding this incredibly devastated region in any meaningful way. the russian track record is not good. he has also said that the west will never, never win this fight on an economic front. is he right? it depends how you define victory. are western sanctions ever going to lead to an

uprising in russia that removes him from power or put russia in a situation that is so economically bad that he has to sue for a humiliating piece on economic grounds alone, without having lost the strategic and tactical battle in ukraine, probably not. but are western sanctions having an effect on the russian economy? absolutely, yes. and are they degrading the ability of the russian military to re arm, especially with the higher tech things that a modern military requires in order to be effective? absolutely, yes. now this week, also looking ahead, we have a, one of a time as a top officials expected in moscow. what do you think lang east presents says about where global trade relations are as a result of this bar? i think it does speak to the status quo. we've seen the merge, where china will attempt to, in some ways, wage a russia adjacent but not necessarily fully bratia aligned path where it seeks to

prop up russia, which is increasingly a kind of little brother, minor ally in the region, but without fully exposing itself to the wrath of the west to secondary sanctions on chinese companies and so on. so it will continue signaling that it is not caught russia off the way the west has. it will continue to do business with russia where that is profitable for china. and i think something that prove mentioned in his speech was trying to improve the logistics of russia. terms of railroads and ports heading in the chinese direction to try to improve those trade flows. but china is not a substitute for the west economically when it comes to russia's economy, and certainly not for many, many years to come. dmitri garza wednesday, founder of trade, explain a thank you so much for taking the time to day. thanks so much. and now to some of

the other global business stories making news, the warrant refrain, cost a global economy considerably more than $1.00 trillion dollars last year, according to a study by the german economic institute. and in 2023. it could amount to as much as one trillion dollars as the war continues this to disrupt productions and supply chains and inflation pushes prices higher aaron's currency. the re all fell to a new, lo, following fresh you sanctions imposed on monday and now takes $500000.00 refills to buy $1.00 on foreign exchange markets. iran central bank set of plans to open a new foreign exchange center to control the exchange rates. pakistan's parliament has agreed to raise taxes on luxury imports and services in a bid to unlock a critical loan from the international monetary fund. the i m. f. has urged the government in islamabad to protect the poor as it introduces reforms aimed at ending a deep economic crisis. the process of food in this color to market and through

oak park stung costs 4 to 2 percent more than it did last year. years of financial mismanagement and spiraling debt in the country is taking its toll on the most valuable then a lot of good that up. we have to skip meals now. sometimes we don't have lunch. other times we don't have breakfast. we used to feed our children a proper diet, but not now. i only cook chicken once a month, my children want he beer jani, but i can't so much the hussy pakistan. so to 6500000000 dollar loan from d i m f in 2019. and her says made white spreads reforms to unlock loan payments. raising sales tax from 17 to 25 percent, and scrapping subsidies on petrol gas and electricity prices. policies that are meant to establish the economy, but some paxton is believed the reforms are making life harder, all on his everyday life has become miserable. it's difficult to survive for us die

m f is a curse. every time i am, if missions come, they have their own conditions. but the question is, what difference today make for ordinary people? a sort of all over inflation has crossed all limits. prices of everything are increasing and the situation in the country is getting worse. if the government agrees with the i m f conditions, inflation will increase further and people will have to live in even worse conditions or law of setting or got his are some like, i think the government says the reforms are necessary to avoid a deepening crisis. but i am at managing director, christina got gear, we're taught d w that the government must focus on making the reforms fair on you. i want to stress that we are emphasizing 2 things. number one, thanks revenues dos. who can those that are making good money? public sector, private sector, they need to contribute to the economy. and secondly, to her via

a fair distribution of dia, pressures, by moving subsidies only towards the people who really needed any luxury tax on the likes of imported cars, appliances and cosmetics, is all part of to plan to shift the burden to wealthier citizens. the i m f also wants pakistan to and tax exemptions for some exports and reforms could unlock a further $1000000000.00 in crucial funds, whether they struggle is due to mismanagement or misplaced reforms. for now, families like oz ross will continue to skip meals just to make ends meet. next, we take him to the danish coastal city of thunderbird, which aims to the climate neutral as early as 2029. city officials call the effort project 0. here's a look at what they're doing. valves were fridges and heat pumps. role of the conveyor belt at this factory in san the borg denmark, making them requires

a lot of energy. previously, the heat useful soldiering was wasted. but not any more. the vanity of your thoughts and in addition, we want to reuse the heat that we generate here. and the funnel above the flames sucks back the energy and the heat, which is then were used in the production here. for example, for the air conditioning in this whole 3000 people work in this factory, which has been net 0 since this year. any excess heat is fed into the cities heating network. the business has an agreement with the authorities. all part of a public private effort started in 2007 to make on the board climate neutral in 3 steps. they are in a gift of state 1st for the tennessee before is energy efficiency because the energy we save is the greenest energy. next, we use the excess heat which is produced elsewhere. we connect areas. once we have reduced energy use as much as we can,

we turn to renewable energy. once this supermarket chain is also part of the effort freezers of the energy source heat generated from cooling, as we used and covers around 78 percent of us. doors heating means including hot water for gleaning recycling heat has made all of that possible for 5 years now. but cars remain a challenge there hardly any electric vehicles. the pride of thunder berg is ellen . the world's biggest electric car ferry. it is a 100 percent electric with 30 tons of lithium batteries below deck in the engine room. they are charged at night with wind energy. that something that leaves ellen's captain, beaming men in store. he led, hateful to his garret is totally fantastic to be on board and fantastic to be here because it is so new and groundbreaking, and proof that it can be done to build something big that runs on electricity like cars. some could, will. ellen is a recipe for success and

a model for other ferries in denmark, it seems sandburg and the whole country, a setting sail towards the goal of climate neutrality. and a reminder of the top is the story of are following for you this hour. and a speech today, rushes vladimir putin remain defiance in western sanctions. have failed, and that russia has all the resources it needs to support its economy. thank you so much for watching. ah ah, with

ah, a beginning of a story that moves us and takes us along for the ride. it's all about the perspective culture information. this is the w. w made from mines. the only way i can be on the top is to create my own. m. a story with just a click away the journey,

the destination right size out based documentary with i can then treat are being fought in real time on social media. i'm the, if it's in the propaganda war for ukraine on russia's war in crane one year since the invasion began in february on d. w. a . oh, frankfurt a lot international. a gateway to the best connection, self road and radio. located in the out of europe. you are connected to the whole world who experienced outstanding shopping and dining offers and drawing our

services. be our guest at frankfurt airport city, managed by from bought lou. ah ah, this is dw news live from berlin. russia suspends. it's the last major nuclear disarmament treaty with the u. s. president vladimir putin announces the movie during a speech attempting to justify with the war in ukraine in response to the west. and you praying present a united front.