Russia's Economy: Can Sanctions Really Change Putin's Mind?
RussiaSat Dec 20 2025
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Russia's economy is facing tough times. Inflation is high, the budget deficit is growing, and oil and gas revenues are dropping. But don't expect Putin to stop the war in Ukraine anytime soon. Experts say Russia can keep fighting for years, even with Western sanctions.
The Kremlin is managing the economic storm. Taxes are up, and prices are rising, but people are used to it. High inflation doesn't bother Russians much. The government is spending a lot on the military, but some people are benefiting. Defense contractors and blue-collar workers are doing well. Even some poor, rural areas are seeing economic growth because of the war.
Putin is not feeling the pressure. The government is paying soldiers well and giving money to their families. This keeps people from protesting. But the long-term picture is different. Russia is using up its savings, and sanctions are making business harder. If sanctions get tougher, Russia might have to change its plans.
Experts think Putin wants the war to continue. It's good for his power at home. But if the economy gets much worse, he might have to think differently. For now, though, the war goes on.