Part 6/15:
Russia’s economy is increasingly showing signs of strain amid the ongoing Ukraine conflict and international sanctions. President Vladimir Putin announced plans to reduce military spending in the coming years, a step that marks a notable shift from previously aggressive defense budgets. This recalibration comes amid warnings from Russian financial officials of a looming recession and stagnant growth.
Putin’s decision to slash defense expenditures seems tied to the severe economic challenges Russia faces. Despite claimed GDP growth of over 4% last year, inflation remains high, and interest rates are stuck at punitive levels of around 20%. The cost of imports has surged under Western sanctions, exacerbating inflation and decimating sectors outside the military-industrial complex.