During a meeting of the Council for Strategic Development and Priority Projects in the Kremlin, Russian President Vladimir Putin publicly acknowledged for the first time in recent times that systematic strikes on Russian infrastructure and industry are having a tangible negative impact on the country's economy. Although the Russian leader categorically denied the existence of "critical consequences," he confirmed that the damage from the attacks is an obvious factor hindering economic growth.
Economic damage: acknowledgment without panic
Speaking to council members, Putin stated: "It is clear that there are no critical consequences from such attacks, there were none, and there cannot be any. But they certainly cause us harm, this is obvious. We understand, see, and know this." This statement became an important marker, as previously the Russian leadership often tried to downplay the scale of destruction, creating an image of complete economic resilience. Now, however, the Kremlin is openly stating that external pressure and constant attacks on enterprises directly affect GDP growth rates and industrial indicators.
Budget deficit and the oil needle
The situation is exacerbated by financial problems. According to European intelligence services, the deficit of the Russian budget already exceeds the annual plan by 70%. The only salvation for the Kremlin was a temporary rise in global oil prices, which allowed for additional revenues. Experts estimate that thanks to this factor, Vladimir Putin will be able to finance the war against Ukraine for at least until next spring, postponing an acute financial crisis.
Strategy "to the end": refusal to freeze
Despite economic difficulties and the admission of damage, Moscow does not plan to stop hostilities. During the discussion of possible scenarios for the development of the conflict, including the option of "freezing" the war along the line of contact, representatives of the Kremlin took a tough stance. Cynical assessments were voiced, according to which a ceasefire is unacceptable for the Russian authorities. Putin and his entourage continue to insist on the need to achieve their military goals, ignoring the growing economic costs.
Contradictory data
There is a clear contradiction between the official statements of the Kremlin and the real state of affairs. On the one hand, Putin claims that the Russian economy holds the fourth place in the world and the first in Europe, demonstrating stability. On the other hand, the admission of damage from attacks and a record budget deficit point to the deep vulnerability of the Russian economy. European analysts believe that statements about leadership are an attempt to create an appearance of well-being, while real indicators suggest that the country is on the verge of financial collapse, which has only been temporarily postponed due to high energy prices.
