The Russian economy is facing a backlash concerning the ongoing war in Ukraine. And, the cost of the economy has been laid bare by the intelligence of the United Kingdom. Higher interest rates are emerging and are soaring inflation. It is difficult for Russian President Vladimir Putin to keep up with the military spending at present, states a report from the Ministry of Defence(MoD).
According to the recent updates regarding the conflicts of the war, which primarily began with Russia’s invasion more than 3 years ago and at that particular time, the interest rates were reportedly at a staggering 21% – which is also said to be their highest in more than 20 years. Before the war, they were at 8.5%.
Currently, the inflation is at 10.1%, which is still a way more higher than the Central Bank of Russia’s target of 4 %
Adding more to that, the value of the ruble has also taken a hike compared to the US dollar and it has made the Russian oil as well as the gas exports more expensive. What is more worsening is that, these are increasing the country’s deficit.
The MoD said, “Labour shortages, alongside high levels of government spending, almost certainly mean inflation will remain above the CBR’s target through 2025.
They further added, “Long term inflationary pressure will highly likely exacerbate pressures on Russia’s ability to sustain high defense spending.”
Latest Defence Intelligence update on the situation in Ukraine – 12 April 2025.
Find out more about Defence Intelligence’s use of language: https://t.co/eRh9Do9LOp#StandWithUkraine 🇺🇦 pic.twitter.com/Z78odKWefX
— Ministry of Defence 🇬🇧 (@DefenceHQ) April 12, 2025
This update from the Ministry of Defense came parallel to US President Donald Trump’s efforts to discontinue the war, where he tried to keep his election pledge, but in vain.
However, Donald Trump did manage to secure ceasefires partially in the Black Sea regions, which are against the energy infrastructure of Ukraine; however, currently, both parties are claiming that their brief truce has been broken.
To say that Trump is against Ukraine is not a new thing, and is also evident from the behavior he did alongside JD Vance, with the Ukraine leader Zelenskyy the previous month only, when he came to the White House. To say he simply doesn’t like Zelesnkyy won’t be wrong, which is clear from his dissatisfaction with not getting an invitation before from Britain’s Royal Family, which Zelenskyy got early.
Irrespective of the hatred between leaders, the only positive sign is that efforts are there to stop the war, and now, Russia, who primarily invaded, is facing their own issues.
