Translated material
Media: Putin began to be stressed by the situation in the Russian economy
Vladimir Putin is increasingly concerned about the situation in the Russian economy. Reuters writes about this, citing several knowledgeable sources.
The agency notes that the Russian economy has continued to grow over the past two years, fueled by exports of oil, gas and other minerals, despite a slew of sanctions imposed on Russia by Western countries since the start of the full-scale Russian invasion of Ukraine in February 2022.
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However, the Russian economy has been struggling in recent months due to labor shortages and high interest rates, which had to be introduced to combat inflation that has accelerated since the start of the war. According to Reuters sources, this has forced a significant part of the Russian elite to come to the conclusion that it is necessary to end the war and begin peace negotiations.
“Russia, of course, is economically interested in negotiations on a diplomatic end to the conflict,” former Deputy Chairman of the Central Bank of Russia Oleg Vyugin said in an interview with the agency. He noted that the Russian economy is threatened by even greater distortions caused by the rapid increase in war-related expenses.
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At the same time, Putin himself, according to the agency’s sources, believes that the main goals of the war in Ukraine have already been achieved. Reuters interlocutors explained that one of his key goals was to obtain land communications with Crimea, which was annexed in 2014.
Late last year, a former senior Russian official told the Financial Times that economic problems could push Putin to end the war in Ukraine because he fears Russia could follow the fate of the Soviet Union. The publication's interlocutor emphasized that Putin knows that the economy cannot grow with interest rates, which he called a disaster.
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