Russian chaos: Ruble crashes - Putin's economy on the ground!

Russian chaos: Ruble crashes - Putin's economy on the ground!

The Russian economy is under massive pressure: the ruble recently experienced a dramatic loss of value that dropped it to the lowest level since the attack on Ukraine. Every day, new exchange offices open in Moscow, which draw attention to the critical situation with striking price displays. As The time reports, many Russians struggle with rising prices, especially for food, while the middle class suffers enormously from the economic consequences of the ongoing war.

The Kremlin is increasingly being forced to react to the crisis: During his annual press conference, Wladimir Putin commented on the "unpleasant and bad" price increases. The central bank has increased the key interest rates to 21 percent in order to act against inflation, but the measures have so far not shown any noticeable effect. According to official information, prices are increasing to 9 percent annually, and the Russian economy threatens to overthrow into a chaos, such as Berlin live . Economic advisor Wladyslaw Wlasjuk draws parallels to the Soviet Union and emphasizes that all the money flows into the armaments industry, while other important sectors remain.

sanctions and their consequences

In addition to the inner difficulties, the Russian economy is further burdened by new sanctions from the United States, which for the first time imposed punishments against the GazpromBank. This bank was one of the last great Russian financial institutions spared from western sanctions. Due to these measures, the rubling course continued to collapse, which could also result in far-reaching oil sanctions that the US government is considering. According to reports, the approach could imitate the "Iranian model", which is directed against buyers of Russian oil.

The continuous economic problems raise questions about Putin's stability. While the population seems to remain still, there are still cracks in the system caused by the falling living standards and increasing prices. The question remains whether this crisis will affect Putin's conquest plans or increase its willingness to negotiate if the problems stop.