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Vladimir Putin warned the global economy could be heading for a catastrophic crisis in a speech at the St Petersburg Economic Forum.

Putin said the world must work together to establish a set of rules for fair play in the global economy.

He warned: “Break the rules is becoming the new rule.”

Free trade must be defended and there must be “comprehensive peace” on the global market, he added.

The Kremlin chief warning comes amid heightened tensions between Russia and the West.

(Image: GETTY)

Putin said: “The disregard for existing norms and a loss of trust may combine with the unpredictability and turbulence of the colossal change. T

“These factors may lead to a systemic crisis, which the world has not seen yet.”

He also called for closer controls on rapid technological changes that could cause “chaos”.

Russia’s leader added: "We don’t need trade wars today or even temporary trade ceasefires. We need a comprehensive trade peace."

(Image: GETTY)

Putin attacked sanctions which are used by world powers to hit back at one another without military conflict.

He accused them of being used “again and again” without control "regardless of political loyalty, talks about solidarity, past agreements and long cooperation”.

Russia is currently under sanctions levied by the US over a various issues – including annexation of Crimea and the poisoning of MI6 double agent Sergei Skripal.

US President Donald Trump had been expected to warm up ties with Russia.

Putin said: “The ability to impose sanctions arbitrarily and with no control fosters a temptation to use such restrictive tools again and again, right and left, in every case, regardless of political loyalty, talks about solidarity, past agreements and long cooperation.”

He added; “Competition, clash of interests, has always been, is, and will always be, of course. But we must be respectful towards each other.

"The ability to resolve differences through honest competition rather than by restricting competition is the source of progress.”

His warning comes amid turbulent times for the global economy as Trump promises to put “America first”.

The US President has been readying for a trade war with China, put harsher sanctions on Iran, North Korea and Russia, and his even threatened to sanction nations in Europe.

Trump believes previous administrations have allowed the US’s rivals to get unfair advantages over Washington.

Putin said: "The system of multilateral cooperation, which took years to build, is no longer allowed to evolve. It is being broken in a very crude way.”

Yesterday, Russia’s leader attacked Britain over as relations between Moscow and the West hit lows not seen since the Cold War.