Worldcrunch
Faced with the threat of global economic chaos brought on by Trump’s tariffs, and accelerated by the war in Ukraine, the Russian economy should be in shambles. However, as noted by Russian economist Władysław Inoziemcew, the situation is far more complicated than it may seem.
Aggressive lending is undermining Russia’s economy, and citizens’ incomes are not keeping up with expenses. It’s the clear sign of a looming economic crisis.
The targeting of oil industry sites in occupied or border regions has now been replaced by a series of drone strikes of energy-producing structures deep inside Russian territory. These attacks aim to cripple Russia’s economy, which could turn the tide on the war.
As Western sanctions have proven ineffective, Russian economy has been growing, along with defense and security expenditures. The world’s singular superpower in Washington has three cards it could pull to squeeze the invading country. Yet something is holding it back.
Russia is digging itself into a hole as it becomes increasingly dependent on China, as a result of international sanctions and isolation. This shifting dynamic, analysts argue, is bound to have ripple effects around the world
The continuing heavy shelling of Kyiv and other Ukrainian cities shows that Russia still has more missiles than Ukrainians would have hoped. The look through the web of Kremlin diktats and murky international commerce that keeps the Russian military churning out hardware that drives the war in Ukraine
Petro Poroshenko, the Ukrainian businessman and politician, who served as the fifth president of Ukraine from 2014 to 2019, believes more can be done to defeat Putin, by truly crippling the Russian economy:
Belgium has lobbied hard for the past year to keep Russian diamonds off the list of sanctioned goods. Indeed, there would be a huge impact on the economy of the port city of Antwerp, if Europe finally joins with the U.S. and others in banning sale of so-called “blood diamonds” from Russia. But a 10th package of EU sanctions arriving this month may finally be the end of the road.
No doubt, strategic errors and corruption at the highest ranks in the Kremlin are partly to blame for the Russian military’s stunning difficulties in Ukraine. But the roots run deeper, where the ordinary recruits come from, how they are exploited, how they react.
In an attempt to shore up its failing economy, Russia is trying to blackmail the West and asking to be paid in rubles for its natural gas. However, such a move is unlikely to help Moscow in the long-term. And the important question still remains of how the EU will manage without Russian gas.
Estimates are that more than 200,000 people have already crossed Russian borders since Vladimir Putin launched the invasion of Ukraine. It looks to be the start of a mass exodus of well-to-do and middle class Russians that could further decimate the economy.