The Kremlin authorities are extending their information campaign to conceal the extent of the negative impact on the Russian economy due to the war in Ukraine. This is reported by UNN with reference to an analytical report by the Institute for the Study of War (ISW).
Details
According to analysts at the Institute of War Studies, the Kremlin continues to conduct an information campaign, probably aimed at both domestic and international audiences, which aims to conceal the extent of the negative impact of Russia's ongoing war against Ukraine on the Russian economy.
It is noted that Russian Prime Minister Mikhail Mishustin met with Russian President Vladimir Putin on February 7 to discuss the state of the Russian economy.
Mishustin said that Russia's GDP grew by 4.1% in 2024, mainly due to the “intensive” growth of Russia's manufacturing industry - likely referring to Russia's build-up of its defense industrial base since the start of its full-scale invasion of Ukraine in February 2022
Mishustin also noted that the main contribution to the growth of the manufacturing industry in Russia was made by mechanical engineering, transport engineering, automotive engineering, and the production of computer and electronic equipment. He also stated that inflation in Russia reached 9.52% in 2024, while Putin declared that as of February 3, 2025, inflation was already 9.9%.
However, real inflation in Russia is much higher than the official statistics that the Kremlin is willing to make public (some studies indicate that the inflation rate in Russia is closer to 20 percent)
Mishustin emphasized the low unemployment rate in Russia in 2024 at 2.5 percent, but only briefly acknowledged the significant labor shortage in Russia that is the reason for the low unemployment rate in Russia.
Mishustin noted that Russia's economic growth may be less significant in 2025, as it is very important to stop inflation and ensure long-term economic growth.
...probably a signal to prepare the Russian population for economic difficulties in 2025. Mishustin and Putin also tried to present the Russian economy as stable in the face of international economic pressure. Mishustin claimed that Russia's fuel and energy complex was adapting and finding new markets
Mishustin argued that the Russian economy has “successfully coped” with “unprecedented sanctions pressure” in recent years, and that anti-Russian sanctions are hurting the countries that imposed them more than the sanctions are hurting Russia.
“Mishustin and Putin, in particular, did not mention that the Russian Central Bank raised the interest rate to 21% in October 2024, or how Russia has used funds from the National Welfare Fund to finance its military efforts over the past three years. The liquid part of the Russian National Welfare Fund may be exhausted by the fall of 2025,” the Institute for the Study of War reported.
ISW's key findings for February 7:
- Ukrainian troops made some progress during mechanized assaults on the front lines in Kursk region on February 6, but Russian sources claimed on February 6 and 7 that Russian troops had at least temporarily stopped the advance of Ukrainian troops southeast of Suzha.
- The Kremlin continues to conduct an information campaign, probably aimed at both domestic and international audiences, which aims to conceal the extent of the negative impact of Russia's ongoing war against Ukraine on the Russian economy.
- The Ukrainian military continues to emphasize the growing potential of drone production and its effectiveness on the battlefield, but acknowledges that Ukraine must solve problems with the supply of its armed forces to completely stop Russia's advance in eastern Ukraine.
- Interim Syrian Defense Minister Murhaf Abu Qasra said in an interview with the Washington Post that Syria is open to Russia keeping its air and naval bases in Syria if it is “beneficial” for Syria.
- Azerbaijani-Russian relations continue to deteriorate following Russia's refusal to accept full responsibility for the downing of an Azerbaijan Airlines (AZAL) passenger plane on December 25, 2024, which was allegedly shot down in midair by Russian air defense before crashing in Aktau, Kazakhstan.
- On February 7, the Cabinet of Ministers of Ukraine appoints Lieutenant General Yevhen Moysiuk and Captain Valeriy Churkin as Deputy Defense Ministers.
- Russian troops have recently advanced near Borova and Toretsk.
- The Russian government continues to use its “Time of Heroes” program to appoint veterans of the war in Ukraine to positions in regional authorities.
Recall
Russia consistently denies Ukraine's sovereignty and justifies its aggression with propaganda about so-called “historical lands.” Viktor Medvedchuk, the godfather of Russian President Vladimir Putin and former head of the banned OPZZh party, has directly called for the annexation of Ukraine.