ISW: Shock Awaiting Russia's Economy In 2025

• 15.11.2024, 8:24

The Kremlin will face significant challenges.

Russia appears to be facing serious problems in the near future. Its economy is not as resilient as the authorities claim.

This is reported by the American Institute for the Study of War (ISW).

As the analysts write, the Kremlin's recent economic policies indicate that the Russian economy is likely to face significant problems in 2025. Therefore, Russian dictator Vladimir Putin is concerned about Russia's long-term economic stability.

Specifically, the Kremlin has recently made several decisions aimed at reducing the Russian government's spending on wounded Russian military personnel, fighting inflation, and addressing long-term demographic problems such as low birth rates and labour shortages.

These policies show that the Russian economy is not as resilient to Western sanctions, monetary restrictions, and the cost of warfare as the Russian government says.

It also shows that the Kremlin will not be able to sustain a protracted military action for years and decades while protecting Russian society from economic problems.

As a result, consistent Western and international support for Ukraine's resistance on the battlefield will further exacerbate Russia's economic problems.