Putin is increasingly concerned about the state of the Russian economy - media
Kyiv • UNN
Putin expresses concern about the state of the Russian economy due to a lack of labor and high interest rates. trump threatens new sanctions if russia does not negotiate over ukraine.
Russian dictator Vladimir Putin is increasingly concerned about the state of the Russian economy, while President Donald Trump insists on a deal with Ukraine. This was reported to Reuters by five sources familiar with the situation, UNN reports.
Details
Reuters cites sources as saying that Putin is increasingly concerned about the imbalance of the Russian economy during the war, while Trump insists on ending the conflict in Ukraine.
Reuters notes that Russia's oil, gas, and minerals export-driven economy has grown rapidly over the past two years despite multiple rounds of Western sanctions imposed after its invasion of Ukraine in 2022.
But domestic activity has become strained in recent months due to labor shortages and high interest rates introduced to combat inflation, which has accelerated due to record military spending.
According to two sources familiar with the thinking in the Kremlin, this has contributed to the view among some of the Russian elite that a negotiated settlement of the war is desirable.
Trump, who returned to office on Monday, promised to resolve the conflict in Ukraine quickly.
This week, he said that if Putin does not negotiate, additional sanctions and tariffs on Russia are likely, adding that Russia is headed for "big problems" in the economy.
A senior Kremlin aide said on Tuesday that Russia has not yet received any concrete proposals for negotiations.
"Russia is certainly economically interested in negotiating a diplomatic end to the conflict," Oleg Vyugin, former deputy governor of the Central Bank of Russia, said in an interview, citing the risk of increased economic distortions as Russia increases its military and defense spending.
Vyugin was not one of the five sources, all of whom spoke on condition of anonymity due to the sensitivity of the situation in Russia. This is the first to document the extent of Putin's concerns about the economy as described by the sources and the impact this has had on the Kremlin's views on the war.
Earlier, Reuters reported that Putin was ready to discuss ceasefire options with Trump, but that Russia's territorial grab in Ukraine must be accepted and that Kyiv should abandon its application to join US-led NATO.
Putin's frustration was evident during a meeting in the Kremlin with business leaders on the evening of December 16, where he scolded top economic officials,
One source briefed after the meeting said that Putin was visibly unhappy to hear that private investment was being cut due to the cost of credit.
The Kremlin released Putin's opening remarks praising business, but did not name any of the business participants in the mostly closed meeting. Reuters confirmed from one source that Central Bank Governor Elvira Nabiullina was not present.
In addition, it is reported that in his comments on December 19, Putin called for a "balanced decision on the rate." The next day, at its last monetary policy meeting of the year, the central bank kept the rate at 21%, despite market expectations that it would rise by 200 basis points.
In a speech after the decision, Nabiullina denied that she had succumbed to pressure. She said that criticism of the central bank's policy intensified when rates were high.
New US sanctions against Russia push oil prices to a 4-month record13.01.25, 09:24 • 29163 views
Addendum
Russia continues to burn its reserves to support its military economy. The reserves of the aggressor country were also spent to support the economy under large-scale sanctions.
Add
In January, the United States imposed the most aggressive and extensive sanctions against the Russian oil industry, affecting major exporters, insurance companies, and more than 150 tankers.