Putin's war against Ukraine is hitting financial hurdles - Bloomberg

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Russian officials warn Putin of the critical cost of war and budget deficits. Ukraine is increasing pressure on the enemy's rear thanks to drones and EU assistance.

The economic consequences of the war against Ukraine are putting increasing pressure on Russia, and Vladimir Putin's inner circle is already signaling the excessive cost of the protracted conflict. Bloomberg reports this, according to UNN.

Details

According to the publication, Russian financial officials are warning Putin that the war is becoming too expensive for the Russian budget. The budget deficit is growing, economic growth has nearly stalled, and the military leadership is demanding billions more dollars to continue hostilities.

Despite this, as Bloomberg notes, Putin shows no readiness to change course and continues to demand savings in other sectors, remaining determined to seize the Donetsk region.

Ukraine increases pressure on the Russian rear

At the same time, according to the publication's assessment, Ukraine has become more confident after a difficult winter of massive Russian attacks.

In particular, tens of billions of euros in aid from the EU are expected to arrive in Kyiv in the near future, which will help stabilize the financial situation.

Furthermore, Ukrainian long-range drones are increasingly attacking the Russian army's logistics and oil refining infrastructure deep in the Russian rear, limiting the Kremlin's ability to finance the war.

The US moves away from active diplomacy

Bloomberg also notes that the administration of US President Donald Trump has effectively scaled back active diplomatic efforts to end the war, shifting its primary focus to the conflict surrounding Iran.

At the same time, European leaders have not yet decided who exactly could represent Europe in potential negotiations with Putin.

Despite the massive losses of the Russian army, Russian generals continue to convince Putin that Russia is "winning," and within his inner circle, there are almost none who are ready to openly advocate for ending the war.

The Kremlin ignores the internal consequences of the war

The publication emphasizes that Putin acts as if he is confident in his own impunity and pays little heed to the consequences for the Russian economy and society.

Meanwhile, for Ukraine and its allies, the main task remains further increasing the cost of the war for the Kremlin to eventually force the Russian leadership to change its calculations.

Russia begins talks of ending the war to save the economy – Reuters01.06.26, 15:20

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