After Russian President Vladimir Putin repeatedly disparaged the United States and the West in a lengthy address, the White House retaliated.

Putin asserted that the world was at risk from the sanctions placed on Russia as a result of its aggressive invasion of Ukraine. He continued by saying that in order to maintain what he called its worldwide “dictatorship,” the U.S. was prepared to sacrifice Europe, which is going through a crisis with its cost of living due to rising oil prices as the conflict drags on.

Speaking at the Eastern Economic Forum in Vladivostok on Wednesday, Putin criticised the entire West, blaming the U.S. in particular for the economic suffering sanctions against Russia are bringing Europe and other countries as the cost of food and energy soars globally.

A State Department spokesperson told CNBC in an email that “sanctions and export controls are working, and President Putin is desperate to convince the world otherwise” as Washington defended its stance toward Russia, a nation that has been roundly criticised by the West for its ongoing conflict with Ukraine.

Despite what President Putin said at the Eastern Economic Forum, they continued, “Russia is paying a heavy price for its full-scale war on Ukraine, which continues to result in climbing costs – tens of thousands of Russian soldiers killed, 14 million Ukrainian citizens forced to flee their homes, historic cities pounded to rubble – all because Putin is determined to conquer another country.”

According to the State Dept. official, Russia’s own policymakers, including its finance minister, have acknowledged that sanctions have put the nation through significant hardships. “A protracted fall in economic activity will undoubtedly occur in Russia’s economy if it is shut off from the rest of the world’s economy. Much of Russia’s economic progress over the last 15 years is expected to be destroyed by Putin’s war.

Official Russian sources, according to the spokesman, put the country’s budget deficit at over $15 billion in just the month of July. He also added that the Russian government is being forced to spend more and more to support its economy.

Putin has tried to lessen the impact of the sanctions by selling his oil to China and India. According to Reuters, the Russian economics ministry forecasts that greater oil export volumes and rising gas prices will increase this year’s revenue from energy exports in Russia to $337.5 billion, up 38% from 2021.

Putin predicted that Russia will have a budget surplus this year, but he also acknowledged that the economy was struggling and that the GDP would decline by “about 2% or a bit more.”

As winter draws near, the Russian central bank has more pessimistic predictions for the economy, according to Reuters, which cited a report from the institution. It predicts a worsening decline (of 7%) in the third quarter, which would follow a 4.3% decline in the first quarter. The bank anticipates that the economy will begin to improve in the second half of 2023. Inflation for the year as a whole was 15.1% in July, higher than the EU rate of 9.8% for the same period.