The newspaper “Le Monde” writes on Thursday that there are signs of the deterioration of the economic situation in Russia, which is recognized by the heads of Russian companies, even companies close to the Kremlin.
The Russian economy is beginning to collapse, inflation has exceeded 9 percent, the central bank has raised the prime rate to 21 percent, and interest rates on bank loans are approaching 30 percent. The ruble exchange rate dropped to the level of the first months of the war, writes the Paris newspaper. The International Monetary Fund (IMF) predicts that the growth of the Russian economy will decrease to 1.3 percent in 2025. GDP.
– The rate of the Central Bank is 2.5 times higher than the rate of inflation and it will not decrease. It seems that the cure is more harmful than the disease, said the head of mining and metallurgical enterprise “Severstal” Alexey Mordashov.
– The situation is difficult. The economy will not last long. We see clear signs of slowing down, said the head of Sberbank German Graf.
Businesses send signals to the Kremlin
Sergey Chemezov, the head of the Rostiech holding, a company which – wrote “Le Monde” – “is the heart of the industrial and defense complex”, believes that “the increase in interest rates is a serious obstacle to the development of the industrial sector.”
– If we continue (this policy), practically most of our enterprises will go bankrupt, – he adds.
An anonymous Russian business representative told Le Monde that “the environment is sending signals to the Kremlin: the economy is still holding, but it will not last long. The conflict in Ukraine must end as soon as possible.” .
Putin is “loyal to his fundamental assumptions”
US President-elect Donald Trump has allowed media reports that he will quickly travel to Moscow to sign a deal that would effectively force Kiev to make territorial concessions but end the conflict. The Kremlin has not responded to any indication that it is interested in a ceasefire – reminds “Le Monde”.
Vladimir Putin is now “committed to his fundamental assumptions,” a European diplomat told a newspaper in Moscow, making it clear that peace will only be made on his terms.
– In the coming weeks (Putin) will watch Trump and see what will be left of the US military aid to Ukraine. But in its own economic territory in Russia, it faces tests, sanctions and their dangerous consequences, which is worrying, the diplomat adds.
The head of the World Political Conference, Thierry de Montbrial, predicts that the Russian leader will look at Trump for several months. Avoiding mobilization and economic collapse is in the Kremlin’s interest, but “Putin is in no rush.”
Prigozhin’s Rebellion
Yevgeny Prigozhin, head of the Wagner group, a mercenary organization, died on August 23 in a plane crash under unknown circumstances, but the crash is believed to be Putin’s revenge for Prigozhin and the Wagner group’s June uprising.
On June 24, the Wagnerites occupied the headquarters of Russian troops in Rostov-on-Don, and then began to advance towards Moscow. Prigozhin demanded “restoration of justice” in the army and dismissal of Defense Minister Sergei Shoigu from power.
However, in the evening of the same day, he announced the retreat and departure of the mercenaries to the field camps, so that “there would be no bloodshed”.
Main photo source: PAP/EPA/SERGEI ILNYTSKY
