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Analysts say Moscow is resorting to increasingly desperate measures to shore up its forces, and Putin will likely be forced to make more unpopular decisions this year if he wants to continue his invasion of Ukraine.
After all, if a potential military recruit was unwilling to take a hefty signing bonus last year, it is unclear what would make them change their mind now, especially given reports of poor treatment on the front lines and of soldiers bribing their officers to avoid being sent on certain-death ground missions.
Russia’s bank chief vanishes after ‘giving Putin a Ukraine ultimatum’
Conspiracy theories swirl over Elvira Nabiullina, the relative liberal on whom the president has depended to keep the economy afloat
The war on Ukraine is going badly for Russia. The cost is rising with little to show for it. Russian financial reserves have been depleted. The government has been 'running at a loss'. That loss has become far more serious this year. The outlook is for the Russian government's financial position to continue to deteriorate, and for that deterioration to accelerate - oil revenues should fall sharply with a ceasefire in the Gulf, corporation tax receipts at 25% rate were lower in 2025 than in 2024 when the rate was 20%, contraction in the civil economy may reduce receipts from income tax and VAT.
Putin appears to be fixated on / obsessed with prevailing in his war yet the signs are that he will not prevail. With the current level of Russian military 'success' in the war. it could last indefinitely, militarily speaking. Yet the Russian government does not have the financial resources to fight a war that lasts indefinitely.
What to do? Abandoning the war is unacceptable to Putin. Continuing as is may bring about financial chaos. How about intensifying the war, gambling everything on making some progress militarily then suing for peace? I will not be surprised if Putin takes that route. How to finance it? Print money. Providing that does not quickly lead to hyperinflation, it buys Putin some time to improve his end of war / armistice negotiating position.
Most Europeans like freedom and democracy. Prices are going up but not as fast as in totalitarian Russia. In my country there is an acute shortage of housing in many areas.And its going great for Europe right? Spending a ton of money while prices and inflation going up, housing going up, young people can't even buy apartments to live and the population is declining.
And instead of focusing on solving that, Europe keeps sending billions and billions away, genius.