Russian President Vladimir Putin is facing escalating discontent from domestic businesses as the local economy struggles to recover due to Western imposed sanctions.
High-ranking officials from leading corporations have previously expressed concerns about the state of the economy, cautioning that the current circumstances could lead to mass factory closures.
The year 2024 has been marked by increasing inflation and historically high interest rates, which have climbed to 21%, as Russia’s resources are largely being reallocated to fund its ongoing conflict efforts.
The UK’s Ministry of Defence stated: “Criticism of high interest rates is growing amongst Russian business [… ]; nevertheless, inflationary pressures also appear to be escalating, partly due to the recent depreciation of the ruble.”
According to the Express, the MoD notes: “In November 2024, the ruble depreciated to its lowest rate against the US dollar since the invasion of Ukraine in 2022 (114 per US dollar). The drop in the ruble’s value was almost certainly caused by the announcement of sanctions on Gazprombank, followed by the release of economic statistics showing continued overheating of the Russian economy. In response, the CBR announced it would cease buying foreign currencies until 2025.”
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