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Read more here: https://www.msn.com/en-us/money/market ... be&ei=31(Daily Express U.S. via MSN) The Russian rouble plummeted to new depths on Friday, as the economy grapples with the twin challenges of soaring inflation and interest rates. The Kremlin is becoming increasingly anxious, with economic indicators suggesting a looming financial crisis.
In a fresh setback for Putin, the ruble's decline continued, with the ruble continued its downward spiral, with its value now equivalent to a mere one US cent and less than one pence in sterling.
Experts from the Institute for the Study of War, a Washington-based think tank, forecast "significant challenges" ahead for the Russian economy. They highlighted the Kremlin's recent policy initiatives aimed at slashing compensation payments to wounded soldiers, combating inflation, and addressing demographic issues such as low birth rates and labour shortages.
"The Kremlin's recent economic policies indicate that the Russian economy will likely face significant challenges in 2025 and that Russian President Vladimir Putin is worried about Russia's economic stability in the long term," the analysts observed.
"The Kremlin recently adopted several policies that aim to cut Russian government spending on wounded Russian servicemen, combat inflation, and address long-term demographic problems such as low birth rates and labour shortages."
Read more here: https://www.msn.com/en-us/news/world/p ... b0&ei=30(The Telegraph via MSN) (Anton) Barbashin (from Riddle Russia) says Russia’s leaders expect Trump to issue ultimatums to both Kyiv and Moscow: if Volodymyr Zelensky balks at peace terms, the US will sever all military aid; if Putin drags his feet, the US will up the military ante and carpet-bomb the Russian economy.
That economy held up well for two years but this third year has become harder. The central bank has raised interest rates to 21pc to choke off an inflation spiral. “The economy cannot exist like this for long. It’s a colossal challenge for business and banks,” said German Gref, Sberbank’s chief executive.
Sergei Chemezov, head of the defence giant Rostec, said the monetary squeeze was becoming dangerous. “If we continue like this, most companies will essentially go bankrupt. At rates of more than 20pc, I don’t know of a single business that can make a profit, not even an arms trader,” he said.
…
If the Saudis again decide to flood the world with cheap crude to recoup market share – as many predict – oil will fall below $40 and Russia will spin out of economic control.
The Ukraine war may end in Riyadh.
Read more here: https://www.msn.com/en-us/money/news/r ... e&ei=41(Irish Star) The Central Bank of Russia (CBR) decided to keep its interest rates steady at a staggering 21 percent on Friday, amidst insiders labeling the nation's economy as a "disaster" due to soaring inflation. Despite expectations for an increase in rates to combat rising prices, the bank held firm.
Inflation in Russia reached 9.5 percent by December 16, according to the bank's latest announcement. The Kremlin's heavy investment in military industries amid the ongoing Ukraine conflict is fuelling inflation, causing wages to skyrocket.
This wage inflation is spilling over into other sectors, forcing companies to raise their own wages to compete for workers, subsequently driving up prices for goods and services. During his annual call-in session on Thursday, President Vladimir Putin admitted that inflation levels were concerning and mentioned "a certain overheating of the economy."
Nevertheless, he assured that measures are being taken by the government and central bank to slow down the pace. A former high-ranking Russian official confided to The Financial Times that despite Putin's optimistic statements, the reality is that Russia's financial situation is precarious.
"He can hang on for two or three years like this," the official remarked anonymously. "But he knows the economy can't grow with these interest rates. It's a disaster," reports the Express.
https://www.newsweek.com/boris-yeltsin- ... 24-1474068Boris Yeltsin's Former Chief of Staff '99 Percent Certain' Vladimir Putin Will Not Be Russia's President in Five Years