The President of the United States Donald Trump insists on ending the war with Ukraine and promises new sanctions against the Russian Federation. This raises concerns for Vladimir Putin. Reports TSN. This was announced by Kontrakty.UA.
This is reported by the publication Reuters.
According to anonymous sources from Reuters, Vladimir Putin's disappointment became evident during his meeting in the Kremlin with business leaders on December 16. He allegedly scolded several officials responsible for economic decision-making. The Russian president was clearly dissatisfied upon learning about the decline in private investments due to high loan costs. The agency also concluded that the head of the Central Bank, Elvira Nabiullina, was not present at the mentioned December meeting in the Kremlin.
According to one source familiar with the Kremlin's position, Putin believes that the main objectives of the war have already been achieved, including control over territories connecting mainland Russia with Crimea and the weakening of the Ukrainian army.
The source stated that Putin is also aware of the pressure the war is placing on the economy, mentioning "really significant problems," such as the impact of high interest rates on non-military businesses and industry.
Russia has increased its defense spending to a post-Soviet high of 6.3% of GDP this year, accounting for one-third of budget expenditures. These costs have been inflationary. Along with a labor shortage during wartime, this has led to rising wages.
It should be noted that Trump demands that Putin reach an agreement and stop the "stupid war." If the United States and Russia do not come to terms soon, the American president promises to raise taxes, tariffs, and the level of sanctions on everything Russia sells to the U.S. and other participating countries.
The Russian economy withstands the pressure
The Russian economy has built up a capacity reserve for conducting military operations. Western intelligence agencies estimate that Russia's economic state allows it to continue the war in Ukraine for at least two more years. Sources from the British newspaper The Telegraph reported that Moscow is currently spending 40% of the Russian GDP on the war, significantly more than allocations for healthcare and education.
The full extent of Russia's shift to military production is unknown, as the Kremlin keeps all indicators secret. Data on the defense industry is unavailable, and Russian propagandists exaggerate capabilities. The Russian Ministry of Defense claimed in 2023 to produce 1,530 tanks and 2,518 armored vehicles. Russian officials have also reported a 560% increase in tank production and a 350% increase in armored personnel carriers.
Additionally, Moscow aims to reach a target of 2 million artillery shells per year, not including ammunition requested from North Korea and potentially from Iran.