Russia despite war in Ukraine: Financial expert warns of budget cuts

Russia despite war in Ukraine: Financial expert warns of budget cuts

According to a report by www.fr.de,
Despite significant costs in the Ukraine war, Russia's economy is defying sanctions. But now there are budget cuts – and they are affecting the population.

Despite the significant costs of the Ukraine war, the Russian economy has so far been able to withstand the sanctions. However, budget cuts have been announced that are affecting the population. The war in Ukraine has developed into a costly material battle that poses major financial challenges for President Vladimir Putin. It is expected that the coming years could be challenging for Russians as Putin would finance the war with future funds. Despite exports and resilience, an analysis of Russia's economic strength suggests that Russia's economic performance may currently be in decline because of the war in Ukraine. The savings on fireworks and New Year's decorations are a clear sign of the budget cuts and highlight the financial pressure Putin is under because of the war.

The impact of the Ukraine war on Russia's economy is noticeable. Inflation is rising and budget cuts could further reduce the population's purchasing power. The uncertainty on the financial markets and the devaluation of the ruble could influence the willingness to invest and lead to stagnation in the economy. In addition, the deterioration of the economic situation could affect the political climate and increase pressure on Putin, which could lead to a more unstable position for the Russian president. It remains to be seen what further steps the Russian government will take to address economic challenges and finance the protracted war in Ukraine.