The Russian economy, which has been growing since the start of the full-scale invasion of Ukraine, will be on the verge of serious problems in 2025. This is according to analysts at the Institute for the Study of War (ISW) in a recent report. According to them, the Kremlin’s recent economic policies signal growing challenges to the country’s stability, which is causing President Vladimir Putin to worry about the future stability of the economy.
The Russian government’s recent actions include cuts in social support spending, including on treatment of wounded soldiers, fighting inflation, and attempts to cope with low birth rates and labour shortages. These steps show that the economy’s resilience to Western sanctions and the costs of the war in Ukraine is much lower than the Kremlin is trying to demonstrate.
“Continued support for Ukraine from the West and the international community will further complicate Russia’s economic situation,” ISW analysts say.
