Putin's new decree: danger for NATO and bleak future for Russia!

Putin's new decree: danger for NATO and bleak future for Russia!

The war in Ukraine remains a central issue in relations between Russia and the West. Currently there is loud Mercury There is no end to the fighting in sight while Russian President Vladimir Putin plans to step up his military offensive. Experts warn of a possible attack on a NATO member, especially in the region on the Finnish border. Despite Putin's statements about a negotiated peace, experts view these as tactical maneuvers to maximize military advantages.

On May 30, 2025, Putin signed a controversial decree granting the Russian government broad powers. It allows the government to revoke the shareholder rights of defense companies if they fail to fulfill the state defense contract. In addition, the Ministry of Industry and Trade will be allowed to appoint a central management company for companies, covering both civilian and military companies.

Military situation and economic challenges

The Russian economy is facing enormous challenges. How bpb emphasizes, the war resulted in the transformation of foreign trade and the financial system through Western sanctions as well as increased military spending, which amounts to a double burden. Despite initial stability in the first year and a half of the war, it turns out that this came at the expense of the long-term prosperity of the Russian population.

The sanctions that have been imposed since the invasion of Ukraine in February 2022 massively restrict Russia. Access to Western financial systems and foreign exchange reserves, which stood at around USD 300 billion, are affected. In addition, there was a drastic increase in inflation, which stood at 17.8% in April 2022. Such economic shocks have led to a strained supply situation for consumer goods.

Putin's course: militarization or crisis?

There is increasing evidence that Putin not only wants a long war in Ukraine, but also believes in military success in order to prepare society for a prolonged conflict. However, the costs of war are unsustainable, which is already straining Russia's financial capabilities.

In 2023, there was a defense budget of over 6 trillion rubles (approximately $300 billion), but dependence on energy prices and rampant inflation, which rose from 2.3% in April 2023 to 5.7% in September 2023, cast a shadow over economic stability. Many people are leaving Russia and official unemployment stands at 3%, while the tightening in the labor market is noticeable.

Analysts see Putin's new measures and his public rhetoric as a sign of more radical militarization of the economy. The question remains whether Putin can handle the situation in the Ukraine conflict or on the NATO front after a potential further escalation.