Russia's deteriorating economical situation may prompt Vladimir Putin to enter into peace negotiations and end the war against Ukraine," reported Reuter's agency 5 anonymous sources close to the Kremlian administration.
According to Reuters, it is increasingly common to think that the key war objectives have already been achieved, including control of the land connecting Russia to the Ukrainian Crimea annexed in 2014 and weakening the Ukrainian army.
Reuters estimates that a $2.2 trillion Russian economy has until late shown remarkable resilience in war conditions. After the fall in 2022, Russia's GDP grew faster than that of the European Union and the United States in 2023 and 2024.
In fresh months, however, the economical situation has become tense due to labour shortages and advanced interest rates introduced to combat inflation, which has accelerated under the influence of evidence military spending," the agency estimates.
Russia has increased defence spending this year to 6.3% of GDP, which represents as much as a 3rd of budget spending. Furthermore, the government sought to increase taxation revenues in order to reduce the budget deficit.
The central bank of Russia and the global Monetary Fund forecast this year's GDP growth below 1.5%, contrary to the more optimistic assumptions of the Russian government. At the same time, inflation approached a two-digit level, even though in October the central bank raised the mention interest rate to 21%.
"There are any problems, namely inflation and overheating of the economy. (...) The government and central bank are presently tasked with reducing the pace (economy – PAP)”
“Putin said at a press conference on December 19.
The economical problems of the country caused that any elites began calling for the change of the current president of the Central Bank of the Russian Federation, Elvira Nabiullina.
Nabiullina, erstwhile Minister of economical Affairs, has been the president of the Central Bank since June 2013. 3 of the 5 sources quoted by Reuter's agency stated that Putin inactive trusts her despite expanding criticisms of Nabiullin from the oligarchs, among others, Igor Sieczin, Sergei Czemezov, Oleg Deripaski, or Alexey Mordaszov.
President Donald Trump of the United States has promised to end the war rapidly in Ukraine. He has already stated that if Russia is not willing to negotiate, it can anticipate further sanctions from the fresh administration.
The erstwhile vice-president of Russia's central bank Oleg Wjugin said on Tuesday that Russia had not received any concrete proposals for talks so far. However, he added that the Kremlin is curious in the diplomatic end of the war, besides “for economical reasons”.
Russian economy is unchangeable and keeps a comparatively advanced pace of improvement despite any problematic factors"
“Kremla Dmitri Pieskov, a spokesperson today, asked to comment on Reuter’s article.
