“The cost of borrowing and interest rates in Russia increased to painful levels.”, – WRITE: www.unian.ua
The cost of borrowing and interest rates in Russia increased to painful levels.
Due to problems with the economy within the Russian Federation, the tension / collage of UNIAN, photo – screenshot, wikimedia.orgAlmost three years since the beginning of the full -scale invasion of the Russian Federation into Ukraine the economy of the aggressor is in critical condition. The tension within the country is so high that Russian dictator Vladimir Putin began to press on officials because of the “drought” of private investment, reports The Telegraph.It is noted that the cost of borrowing and interest rates in Russia increased to a painful level. This puts pressure on local companies.
Economy problems can not but bother Russian oligarchs. The publication reminded that Rosneft head Igor Sechin and an aluminum tycoon Oleg Deripaska publicly criticized interest rates.
Back in 2023, Deripaska said that money could soon end in the Russian Federation. The publication emphasized that other high -ranking Russian officials supported it.
In addition, the Russian National Welfare Fund is significantly depleted. Journalists shared that the liquid part of the assets is only $ 38 billion. For comparison, at the beginning of 2022, this figure was $ 100 billion.
At first, the economic resistance of Moscow surprised many analysts, but now signs of instability are beginning to manifest itself as ever, added in the publication. Prices in the Russian Federation increase on average 9.5% annually. Immediately after the invasion of Ukraine, this figure was 17.8%.
The publication believes that problems are primarily related to huge military expenditures, which make up more than 6% of the country’s economy. There is also an acute shortage of labor, which will make it difficult for inflation.
Pressure is also executed on the central bank of Russia in order to force it to slow down an aggressive campaign to increase rates. The publication noted that Putin had already turned to the bank in December, which had a little improved the situation.
The senior economist of the Kiev School of Economics Benjamin Gilgenstok told reporters that the Russian Federation was experiencing a “slow death”. He stressed that Moscow does not threaten the inevitable risk of money exhaustion, but Russian politicians are increasingly resorting to non -standard measures to keep the economy afloat.
The publication said that as of the end of 2024, the volume of the national welfare fund of Russia amounted to $ 117 billion (6.6% of GDP). However, the liquid part of the fund decreased to $ 38 billion after a considerable part of the funds were used to finance everyday expenses.
At the Kiev School of Economics, it was found that since the beginning of a full -scale war against Ukraine, liquid assets of Russia, which are mainly stored in Yuan and Gold, decreased by 60%. They are projected that they can run out for two to three years.
The publication added that the rest of the Russian National Welfare Fund consists of Savings Bank’s shares, which is supported by the state and $ 40 billion in illiquid assets that cannot be easily sold as needed.
Hilgenstok believes that the Russian Federation manages to control its currency, Putin will have enough money to continue the war against Ukraine. However, the consequences for Russia’s economy will be significant.
“In the end, the war is paid in rubles, so Putin cannot end in money. Just the further it moves, the more painful the funding becomes. But that does not mean that it is impossible,” he told reporters.
Also, the problem of inflation in Russia is threatened that more and more loans in the economy are offered at subsidized interest rates, added in the publication.
In addition, Gilgenstok is convinced that the new US administration headed by President Donald Trump will not be able to finish the war on its own. He stressed that the sanctions should be strengthened to force Russia to think twice before continuing to fight against Ukraine.
“If you really remove part of Russian oil from the market, then I think Russia will be very quickly in a situation where macro -stability will be thoroughly blown up. But so far we are not living in this world,” Gilgenstok assured.
Russia bypasses Western sanctions – important newsEarlier, The Wall Street Journal revealed that Russia used the construction of NPPs in Turkey to bypass the US sanctions. The US Department of Justice has blocked $ 2 billion in Russian funds with JPMorgan.
In addition, Russia, contrary to sanctions, earns billions of euros in wood. The investigation of the British non -profit organization Earthsight emphasizes that the seven of the ten largest Russian exporters of birch plywood supply products to EU countries.
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