Russia's economy likely faces significant challenges in 2025 - ISW
Russian President Vladimir Putin (photo: Getty Images)
Russia is likely to face serious problems soon, as its economy has proven to be less resilient than the government claims, reports the US Institute for the Study of War (ISW).
Analysts suggest that recent economic policies from the Kremlin indicate that Russia's economy is likely to face significant challenges by 2025. As a result, Russian President Vladimir Putin is concerned about the long-term economic stability of Russia.
In particular, the Kremlin has recently made several decisions aimed at reducing government spending on wounded Russian soldiers, combating inflation, and addressing long-term demographic issues, such as low birth rates and a labor shortage.
This policy indicates that the Russian economy is not as resilient to Western sanctions, financial restrictions, and the costs of military operations as the Russian government claims.
This also indicates that the Kremlin will not be able to sustain prolonged military actions for many years or decades while shielding Russian society from economic problems.
As a result, consistent Western and international support for Ukraine’s resistance on the battlefield will further exacerbate Russia’s economic challenges.
Yesterday, under Putin’s orders, the Russian government sharply reduced payments to soldiers wounded in the war against Ukraine. At the same time, payments for those who became disabled have increased.
