Russian President Vladimir Putin said the European economy's losses from sanctions imposed against Russia could exceed $400 billion, Interfax reported.

"According to experts' estimates, the European Union's direct, countable losses alone from the sanctions fever for the coming year could exceed $400 billion. This is the price of decisions detached from reality and taken contrary to common sense," Putin said, speaking Friday at a plenary session of the St. Petersburg International Economic Forum.

In addition, the Russian president proposed to once again reduce the rate on the program of preferential mortgages - from 9% to 7%, it will be valid until the end of the year.

"After a sharp rise in the spring, interest rates in the Russian economy is gradually declining, the Central Bank is lowering its key rate. In this regard, I think it is possible once again to reduce the rate on preferential mortgages, now up to 7%. But I would like to draw your attention to the following: the program will be valid until the end of this year," said the President of Russia.

The rest of the conditions, including the credit limits, will remain the same.

In April, Putin proposed to reduce the rate on concessional mortgages from 12% to 9%. The state program of preferential mortgages under the new conditions began to work on 1 May.

The preferential mortgage program is valid from 2019.