Atlantic Council - January 2025:
Is 2025 the year that Russia’s economy finally freezes up under sanctions?
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Three years later, the picture looks different. The Russian economy is now beginning to see the full effects of international sanctions. If these trends continue, then the full impact of these financial punishments, combined with strong Ukrainian resistance to Russian forces, could at last put enough pressure on the Kremlin to end its war.
The first signs appeared at the end of 2024. The ruble has weakened, with the Russian currency having lost more than half of its value against the US dollar and the euro, according to a recent analysis by the Kyiv School of Economics. International sanctions on Russian financial institutions played a critical part in this devaluation. In addition, according to the Kyiv School of Economics, Russian oil exports “dropped to $64.40 per barrel” at the end of 2024 (exports were initially $70 per barrel). This suggests that the Russian government is generating less revenue from oil sales.
Rising inflation is causing concerns in Russia, too. In his annual televised question-and-answer session last month, Russian President Vladimir Putin said that inflation is a problem and that the Russian economy is “overheating.” He acknowledged that the price of goods has increased, but he attempted to counter this by saying that wages for Russian citizens have also increased. He then concluded that the Russian Central Bank was working to adjust its benchmark to address rising inflation.
Putin’s points on inflation were telling. The Russian leader seldom discusses problems pertaining to Russian society.
src: click
Carnegy - May 2024:
Russia Has the Resources for a Long War in Ukraine
Vladimir Putin has reason to be confident that Russia can maintain current military spending levels for a relatively long time. This is bad news for Ukraine, its Western partners and neighbors, and overall global security.
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src: click
edit: Oh, and btw. I had to correct the main figure in this blogpost by a factor of 5x. Please reread: