Source: Fortune
Summary
Russia’s economy is struggling due to the ongoing war in Ukraine, with a growing budget deficit and a rapidly depleting sovereign wealth fund. The Kremlin has abandoned fiscal discipline, and the parliament has given the finance ministry a blank check to spend more and borrow past its debt ceiling. The war has also led to widespread fuel shortages, high inflation, and onerous interest rates, causing public discontent to grow. Despite this, Putin’s grip on power remains secure, but experts warn that continued economic pain and disenchantment over the war could lead to a decline in his regime.
Our Reading
The numbers tell one story.
Russia’s economy is unraveling, and the war in Ukraine is taking a toll on the country’s finances. The Kremlin’s abandonment of fiscal discipline and the parliament’s decision to give the finance ministry a blank check to spend more and borrow past its debt ceiling are signs of a regime in trouble. The war has also led to widespread fuel shortages, high inflation, and onerous interest rates, causing public discontent to grow. Putin’s grip on power remains secure, but experts warn that continued economic pain and disenchantment over the war could lead to a decline in his regime. The end, when it comes, will spring from this kind of decline, the sort that begins long before anyone names it.
Author: Evan Null
