Trump attacks Putin: Russia's economy is reeling under pressure!

Trump attacks Putin: Russia's economy is reeling under pressure!

Pressure on the Russian economy is increasing as US President Donald Trump adopts a tougher tone towards the Kremlin. In recent weeks, Trump has announced that he is exploring new sanctions against Russia, which has significantly influenced market reactions in Russia. He spoke out on Truth Social, calling Russian President Vladimir Putin "crazy," particularly regarding the ongoing attacks on civilians in Ukraine. These statements led to a dramatic decline in the Moscow stock market, with an increase of 1.51%, reducing the market capitalization by 100 billion rubles. Particularly affected are large companies such as Gazprom, whose shares fell by 3.5%, while Sberbank and VTB also made losses.

Trump's aggressive rhetoric follows a period in which his stance toward Russia was inconsistent. He had previously threatened far-reaching sanctions and tariffs, but recently signaled a rapprochement with the Kremlin. These developments have raised concerns among both investors and market analysts. fr.de reports that at least two dozen Russian companies are withdrawing from dividend payments for 2024, reflecting uncertainty in the market.

Impact on the Russian economy

The decline in the Russian stock market is not the only sign of growing financial challenges. According to Rosstat, Russian companies suffered a 6.9% drop in profits in 2024 compared to the previous year, with total profits reaching 30.4 trillion rubles ($381.1 billion). Analysts warn that the second quarter of 2025 could be even more challenging, especially if Trump follows through on his threats.

Uncertainty about the implementation of the new sanctions remains. In the past, Trump has often made threats that he has not always followed through on. This raises both concern and skepticism about future U.S. trade policy toward Russia. At the same time, the Western community remains concerned about Russia's ongoing military aggression against Ukraine. More than half of Ukraine's energy facilities have already been destroyed, further exacerbating the humanitarian crisis on the ground. tagesschau.de reports that an upcoming meeting is scheduled in Saudi Arabia between the US and Ukraine to discuss a possible ceasefire.

Uncertainty about political and economic developments remains high, while both investors and governments are closely monitoring the situation. In this already volatile environment, the Russian economy appears to be facing a critical phase, which is further exacerbated by political machinations in the USA.