The newly elected President of the United States Donald Trump possesses real leverage over Kremlin leader Vladimir Putin, which could compel him to end the war in Ukraine. If harsh sanctions are implemented, Putin may have to plead for a peace agreement by the end of the year. Reports TSN. This has been reported by Kontrakty.UA.
This is discussed in a piece by Time.
The authors note that Putin is facing an unacceptable budget deficit to fund his military machinery, which has already reached tens of billions.
"Trump has realized he has leverage over Russia, while Putin is grappling with bankruptcy and total collapse," analysts stated.
According to Time's research, the Kremlin will encounter a financial deficit by the end of 2025. However, a crisis could occur even sooner if stricter sanctions are imposed.
"Putin is concealing how weak the Russian economy is by hiding and manipulating figures. Currently, Putin is refusing to disclose key economic indicators as required by the IMF, which Russia used to publish regularly," Time writes.
Shutting Off Russia's Oil Tap
They also add that information about oil and gas production, as well as data on foreign trade, capital inflow and outflow, financial reports of major companies, Central Bank data on the monetary base, foreign direct investment, gross domestic product, and data on lending and borrowing have been analyzed.
And although Russia has received significant revenues from oil sales over the past few years, Trump has recognized the power of sanctions as leverage.
Time also explains that the world does not need Russian oil, but Putin is desperately trying to sell it to avoid bankruptcy.
"If President Trump, through economic sanctions, shuts off the tap on Putin's oil windfalls, Putin will have to plead for a deal by the end of the year – otherwise, he will run out of money," the authors of the piece write.
It should be noted Trump's statements about the intention to force Russia to reach an agreement through sanctions. However, as stated by the Office of the President of Ukraine, it is also important to enhance military assistance to Ukraine to achieve results.