“Kremlin leader Vladimir Putin is increasingly worried about problems in Russia’s war economy, just as Donald Trump is actively calling for an end to the conflict in Ukraine.”, — write: epravda.com.ua
Kremlin leader Vladimir Putin is increasingly worried about problems in Russia’s war economy, just as Donald Trump is actively calling for an end to the conflict in Ukraine. This was reported by five sources familiar with the situation to the Reuters agency. Russia’s economy, which is based on oil, gas and mineral exports, has shown steady growth over the past two years, despite multiple rounds of Western sanctions imposed after the 2022 invasion of Ukraine. However, domestic economic activity has recently been hit by labor shortages and high interest rates imposed to curb inflation, which has increased amid record military spending.Advertisement: This has prompted a view among some of Russia’s elite that it is desirable to seek a negotiated settlement to the war, two sources said. sources familiar with the mood in the Kremlin. Donald Trump promised to quickly resolve the war in Ukraine. He said this week that new sanctions and tariffs against Russia were likely if Putin did not negotiate, adding that the Russian economy was “on the way to big trouble.” Putin has said that Russia can fight as long as necessary and that Moscow will never cede its interests to another state.Advertisement: However, the Russian leader also recognizes the pressure the war is putting on the economy, the source said, pointing to “very serious problems.” , such as the impact of high interest rates on civilian business and industry. This year, Russia increased defense spending to a record level for the post-Soviet period — 6.3% of GDP, which is a third of budget spending. These costs caused inflation. Putin’s displeasure was evident at a Kremlin meeting with business leaders on the evening of Dec. 16, where he berated top officials of the economic bloc, according to two sources. One of the sources said that Putin was clearly unhappy when he learned that private investment was being cut due to the high cost of credit. We will remind: Donald Trump said that he will introduce high taxes, sanctions and duties on everything that Russia sells to the USA, if the leader of the Russian Federation, Putin, does not conclude a peace agreement with Ukraine. Russia ended 2024 with a record budget deficit of 3.5 trillion rubles in recent years.