Before summer: Russian officials warn Putin of economic crisis threat in Russia - WP
Kyiv • UNN
Russian officials are warning Putin of a potential economic crisis that could engulf the country by summer. Falling revenues and pressure on the banking system point to a growing budget deficit.
Russian officials are increasingly warning Russian dictator Vladimir Putin about a potential economic crisis that could engulf the country by summer. This is reported by The Washington Post, citing its own source, UNN reports.
Details
Thus, according to Russian officials, falling revenues mean that the budget deficit will only grow without further tax increases, while pressure on the Russian banking system is increasing due to high interest rates and corporate borrowing to finance the war.
One Moscow businessman said the crisis could hit in "three to four months" as signs emerge that real inflation significantly exceeds the officially reported 6 percent, despite interest rates being held at a high 16 percent. Signs of growing economic tension include the largest number of restaurant closures in Moscow since the pandemic and forced layoffs of thousands of workers due to rising costs.
Russia's economy exhausted by war, 2026 will be critical - WP23.12.25, 01:00 • 5835 views
At the same time, it is indicated that there is little evidence that Putin is going to change his calculations and back down from the Kremlin's maximalist war demands. Last week, Foreign Minister Sergei Lavrov rejected Western security guarantees, which Ukraine says it needs for any deal, instead calling for an end to the "regime in Kyiv."
We have no understanding of when the war will end
In turn, former Bank of America Merrill Lynch Vice President Craig Kennedy added that Russia is only becoming more vulnerable to economic pressure: "oil revenues are falling, lending is overextended, and Moscow knows that in 2026 the situation is likely to only get worse."
Recall
According to the Foreign Intelligence Service of Ukraine, the Russian banking system in 2025 lost key signs of stability, despite the regulator's reassuring rhetoric. The net profit of banks decreased by 8% compared to 2024 and amounted to 45 billion US dollars, while the return on equity fell to 18%.