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		</div><p>Russia has climbed out of recession despite continuing western sanctions, Vladimir Putin has told the nation.</p>
<p>The Russian president said during a live call-in show that the restrictions have forced the country to &#8220;switch on our brains&#8221; to reduce dependence on energy exports.</p>
<p>Mr Putin also deplored the US Senate&#8217;s decision to impose new sanctions on Russia as a reflection of western efforts to &#8220;contain&#8221; Russia, but insisted that the measures have only made the country stronger.</p>
<p>The Republican-led Senate voted on Wednesday to punish Moscow for interfering in the 2016 election by approving a wide-ranging package of sanctions targeting key sectors of Russia&#8217;s economy and individuals who carried out cyber attacks.</p>
<p>The US Senate bill follows up on several rounds of sanctions imposed by the US and the European Union over Russia&#8217;s annexation of Ukraine&#8217;s Crimean Peninsula and its support for pro-Russia insurgents in eastern Ukraine.</p>
<p>Mr Putin argued that Russia has done nothing to warrant the US Senate&#8217;s move, saying it highlights the west&#8217;s policy of containing Russia and also reflects domestic infighting and &#8220;internal political struggle&#8221; in America.</p>
<p>Mr Putin said that the sanctions have given Russia an incentive to shed its dependence on oil and gas exports and &#8220;switch on our brains and talents&#8221; to develop other industries.</p>
<p>He emphasised that electronics, aerospace industries and agriculture have all received a boost.</p>
<p>Russia has responded to the US and EU sanctions by halting most western food imports, a move that has helped increase Russian agricultural output.</p>
<p>Russian farmers have pleaded with the Kremlin to keep the import ban even if the west lifts its sanctions, but Mr Putin said that if <i>&#8220;our partners lift the sanctions against our economy, we will respond in kind&#8221;.</i></p>
<p>The Russian leader claimed that the &#8220;crisis is over,&#8221; pointing at modest economic growth over the past nine months, low inflation and rising currency reserves.</p>
<p>Mr Putin said that a slump in oil prices had been a more important factor in Russia&#8217;s economic slowdown than the sanctions.</p>
<p>He acknowledged that the Russian economy has not yet shed its dependence on exports of raw materials, but noted that non-energy exports have been growing.</p>
<p>Mr Putin recognised that people&#8217;s incomes have fallen and 13.5% of Russians now live below the poverty line.</p>
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