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Russia’s struggling war economy might be what finally drives Moscow to the negotiating table
- On April 30, 2025, Russian President Vladimir Putin visited a war-themed exhibit at the museum dedicated to the World War II victory located on Poklonnaya Hill in Moscow amid ongoing hostilities with Ukraine.
- The tour occurred against the backdrop of Russia’s war-focused economy strained by international sanctions, high inflation, and rising production costs worsening since the 2022 invasion.
- Russian forces partially occupy southern and eastern Ukraine using mostly Soviet-era tanks, artillery, and infantry fighting vehicles, while planning a summer offensive to consolidate gains despite dwindling stockpiles.
- Russia’s Finance Ministry lowered its oil price forecast to $56 per barrel and expects 24% lower revenues this year, while inflation remained above 10% and interest rates held at 21%.
- Increasing military and economic pressures may eventually push Moscow to negotiate, but officials currently aim to sustain offensive operations to maximize leverage before talks.
11 Articles
11 Articles
The Conversation
Phil's Stock WorldRussia is facing fresh sanctions, but Putin is used to dealing with a struggling economy
The UK and the EU have agreed to hit Russia with a raft of new economic sanctions after hopes of a ceasefire with Ukraine came to nothing. One French minister commented that it is time to “suffocate” the Russian economy. Since the country’s fullscale invasion of Ukraine in 2022, that economy has certainly suffered. Sanctions on Russia have already led to a depreciation of the rouble, high inflation, very high interest rates and a stagnating econ…
Russia Is Entangled in Its Own War Economy
Ending the war in Ukraine will not be an end point, but rather a stopover in a longer trajectory of troubled relations with Russia. Putin is trapped in the logic of his own war economy: the cost of the war is unsustainable, but ending it would create serious economic difficulties. And so new objectives must be set first; an important warning to the West. With a somewhat creative flair for finding parallels, do...
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