"Trump punched Putin in the teeth." What's really happening with Russia
news.online.ua
Wed, 30 Apr 2025 12:04:15 +0300
Trump continues to unknowingly destroy RussiaA few weeks ago, the Central Bank of the Russian Federation officially acknowledged that several sectors were experiencing a decline in production volumes due to a sharp drop in demand.Russia is being hit by an increasingly severe storm, and there are many reasons for this.First of all, we are talking about the socalled structural transformation of the economy.We cannot ignore the fact that in the past the aggressor country was oriented towards the West and allowed private business to develop albeit with restrictions.However, after the fullscale invasion of Ukraine, everything changed dramatically, and it became a war economy that turned to the East.The Kremlin was forced to spend huge sums of money, not only on weapons production but also on new logistics chains for trade with China and India.
This stage is now complete.
This year, military spending will grow by just 3.4 in real terms, a sharp slowdown from last years 53 jump.
The reduction in spending on structural transformation means slower growth.
Its no secret that inflation in Russia has been exceeding the target level of 4 per year for many months.Moreover, in February and March it reached over 10.The aggressor country is also significantly affected by the worsening external conditions, which were provoked by US President Donald Trump, who started global trade wars.
Trump is probably friendly towards Putin, but with his trade war he has given him a painful kick in the teeth, writes The Economist.
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