Putin sounds the alarm: Western sanctions are driving Russia into crisis!

Putin sounds the alarm: Western sanctions are driving Russia into crisis!

Russia's economy is under immense pressure and President Vladimir Putin is alarmed. The Western sanctions are now having a clear impact: Inflation in Russia is skyrocketing to an alarming 9.3 percent, which is more than four times the German inflation rate of 2.2 percent in December. This led to massive increases in prices, which are putting pressure on both the retail and aviation industries. According to the state news agency TASS, Putin called the sanctions an "alarming signal" and acknowledged that his government's responses were not enough to combat the problems. Experts warn that a wave of bankruptcies is looming, which further threatens Russia's economic stability Mercury reported.

There is also the political dimension of this crisis, particularly with regard to Hungary. Prime Minister Viktor Orbán is being criticized for threatening not to extend EU sanctions against Russia. Orbán wants to wait and see how the new US President Donald Trump decides before making a final decision. This could endanger unity in the European Union and play into Russia's hands. A departure from Hungary could mean that Russia can once again conduct business with Europe unhindered, which poses enormous challenges for the West. The EU would then have to accept a loss of Russia's economic isolation, which could lead to a catastrophic turning point in the geopolitical situation, as Time analyzed.

Putin also blames the Russian central bank's late reaction and points to the pressure that war spending is putting on economic development. China remains Russia's most important trading partner, but many major banks have withdrawn due to Western sanctions. These dynamic developments could further destabilize the economic balance in the region, while hopes for an early recovery of the Russian economy are fading.