Economic Strain on Russia Could Prompt End to Ukraine War, Experts Say

RU
Published:

According to a recent report from the Atlantic Council, Russia is beginning to feel the severe economic consequences of the Western sanctions imposed over nearly three years of conflict in Ukraine. Analysts believe these mounting pressures may lead the Kremlin to reconsider its military operations by the end of this year.

Mark Temnycky, a fellow at the Atlantic Council, stated that the sanctions, which have included denying Russia access to the SWIFT international financial system and limiting trade on critical exports like oil and gas, are having a growing impact on Russia's economy. As a result, the Russian ruble has lost over 50% of its value against the dollar and euro since the conflict began.

Furthermore, Russia's energy revenue has seen a significant decline, dropping nearly 25% in 2023, with projections indicating continued decreases in oil and gas revenues until 2027. Inflation in Russia has also surged, reaching 9.5% year-on-year towards the end of December, a troubling sign acknowledged by President Vladimir Putin.

The ongoing adversity could exacerbate financial challenges for the Russian government, which may face significant budget constraints as early as 2025. Experts are warning that without a change in course, Russia could enter a state reminiscent of Soviet-style stagnation. The combination of economic distress and strong resistance from Ukrainian forces might ultimately pressure Moscow to pursue a resolution to the ongoing conflict.

Weekly Newsletter

News summary by melangenews

Loading...

More from Russian Federation

Drone Swarm Breaches Russian Air Defense, Sparks Refinery Explosion

A drone swarm has reportedly breached Russian air defenses, resulting in an explosion at a refinery in Russia, according to BILD. The incident took place on January 30, 2025, and highlights the ongoing vulnerabilities in Russian military infrastructure amid heightened conflict. Officials did not immediately confirm details regarding potential casualties or the extent of the damage caused by the explosion. Sources suggest that the breach of air defenses points to a significant advancement in drone warfare capabilities, which could alter strategic calculations in the region. This event follows a series of recent drone strikes in the area, raising concerns over the effectiveness of existing military responses. Analysts warn that this may encourage further similar operations, as adversaries seek to exploit gaps in Russia's defense systems. In the broader context of escalating tensions, experts emphasize the need for reassessment of defense strategies to protect critical infrastructure. The situation continues to develop, with further updates anticipated as investigations proceed.
RU

Putin Claims Trump Could Have Averted Ukraine War if Election Had Not Been Stolen

Russian President Vladimir Putin asserted that former President Donald Trump would have prevented the Ukraine war had he not faced an alleged "stolen" election in 2020. In remarks made on January 24, 2025, Putin expressed willingness to engage in discussions with Trump about the ongoing conflict in Ukraine, highlighting doubts regarding Ukrainian President Volodymyr Zelensky's legitimacy. “How can negotiations now be resumed if they are banned?” Putin questioned, referencing a decree from Zelensky banning talks. Putin described Trump as "smart" and "pragmatic," suggesting that he does not believe Trump would impose sanctions on Russia that would negatively affect the U.S. economy. These comments come amid escalating tensions surrounding the Ukraine conflict, as geopolitical disputes continue to unfold. Such assertions play into the complex interplay of international relations and domestic U.S. politics, illustrating the challenging dialogue surrounding the war's origins and resolutions.
RU

Russia Proposes Nuclear Disarmament Talks Including France and UK Amidst Tensions with NATO

Russia has expressed its intent to revive nuclear disarmament discussions with the United States following the collapse of the "New START" treaty in 2023. Kremlin spokesperson Dmitry Peskov indicated that these conversations should involve France and the United Kingdom, underscoring the need for multilateral engagement in nuclear discussions. The proposal comes as former President Donald Trump suggested potential negotiations with President Vladimir Putin, hinting that China could also be included in future agreements. While both the U.S. and Russia maintain warhead limits, the absence of a replacement treaty has raised concerns about nuclear risks. Russian defense official Sergei Shoigu has warned of increasing dangers of nuclear conflict, attributing this to NATO's actions in Eastern Europe. In turn, NATO has criticized Russia for its military presence in Belarus, highlighting escalating geopolitical tensions. As global power dynamics shift, the urgency for renewed disarmament talks is emphasized, with attention now on how Western allies, particularly France and the UK, will respond to Russia's overture.
RU
All Russian Federation News ->