Exclusive: Putin growing concerned by Russia’s economy, as Trump pushes for Ukraine deal

Reuters ^ | January 23, 2025 | arya Korsunskaya, Guy Faulconbridge and Gleb Stolyarov

[Timber Rattler]

President Vladimir Putin has grown increasingly concerned about distortions in Russia's wartime economy, just as Donald Trump pushes for an end to the Ukraine conflict, five sources with knowledge of the situation told Reuters.

Russia's economy, driven by exports of oil, gas and minerals, grew robustly over the past two years despite multiple rounds of Western sanctions imposed after its invasion of Ukraine in 2022.

But domestic activity has become strained in recent months by labour shortages and high interest rates introduced to tackle inflation, which has accelerated under record military spending.

That has contributed to the view within a section of the Russian elite that a negotiated settlement to the war is desirable, according to two of the sources familiar with thinking in the Kremlin.

Trump, who returned to office on Monday, has vowed to swiftly resolve the Ukraine conflict, Europe's biggest since World War Two.

This week he has said more sanctions, as well as tariffs, on Russia are likely unless Putin negotiates, adding that Russia was heading for "big trouble" in the economy. A senior Kremlin aide said on Tuesday that Russia had so far received no specific proposals for talks.

[Timber Rattler]

Hardly the response that Putin expected from Trump, and the Russians are not happy at all.

A Kremlin propagandist told President Trump to f*** off in response to a deal offer

[rottweiller_inc]

The reporter is sitting right there, in Putin’s head, as he thinks through the problems of his country.

[JonPreston]

I’m trying to remember the last time Reuters printed an honest account of world 🌎 events. I’ll let you know when I find one.

[canuck_conservative]

And remember, Trump is the Presidential candidate that Russia wanted to win! lol

[ANKE69]

Donald Trump doesn’t know how to stop the war in Ukraine & JD Vance is dangerous and too radical” - V. Zelensky, Sep.2024

‐———————————

[Timber Rattler]

Well this may help you...

Trump's ultimatum to Putin sparks uproar among Russian media

[canuck_conservative]

You just made that up.

Let’s see the source quote, liar.

[Timber Rattler]

Has Trump stopped the war yet?

T+68 hours and counting since the inauguration...

[cornfedcowboy]

You are so so right! This article is commentary, not reporting.

[McGruff]

“according to two of the sources familiar with thinking in the Kremlin.”

More unnamed sources. Such is the state of reporting these days.

[PIF]

Russian Offensive Campaign Assessment, January 22, 2025

The Kremlin has launched an information operation that seeks to create the false impression that the Russian economy is performing well despite numerous continued indicators of macroeconomic distress. Russian President Vladimir Putin claimed during a meeting on economic issues on January 22 that 2024 was a “strong year” for the Russian economy.

Putin claimed that Russia has a manageable budget deficit of 1.7 percent and achieved a 26 percent increase in non-oil-and-gas revenue to 25.6 trillion rubles (approximately $257.9 billion) in 2024 and announced a retroactive 9.5 percent increase in insurance and military pensions to address rising Russian inflation. Bloomberg reported on January 21 that the Russian Finance Ministry released a report projecting economic strength and suggesting that Russian budget revenue in December 2024 reached a record high of over 4 trillion rubles (about $40 billion) - a 28 percent increase compared to December 2023 and the highest level recorded since 2011.

The data fails to account for Russia's unsustainable levels of defense spending, rampant inflation, a growing deficit and the erosion of Russia's sovereign wealth fund, however.

ISW continues to observe macroeconomic data that directly contradict the Kremlin's claims that the Russian economy is performing well. The Kremlin has recently adopted policies aimed at increasing defense spending all while Russian society faces labor shortages, broader demographic issues, declining savings, and increasing reliance on bailouts as the Russian economy faces rising interest rates, inflated salaries, and deteriorating production capacity.

These economic realities suggest that the Kremlin's efforts to posture economic strength are largely an information operation aimed at reassuring domestic audiences and posturing Russian strength abroad while masking the true challenges Russia's economy is facing, particularly heightened due to its war against Ukraine.

[icclearly]

Oh, this is terrible news for them Ruskies.

Maybe they can figure this out before things collapse over there. After all, this little third-world country that is over 50% smaller than the US and headed by a dictator/tyrant has dealt with other massive debacles over the years like.....

-Putin's cancer
-Running out of missiles to fight the Ukies
-Dealing with game-changer NATO/US/Western arms like F16s, Javelines, Abrams, HIMARS, and on and on and on -- and still winning
-Collusion with the prior Trump administration and letting them hookers pee on his bed in Moscow

And now, all of a sudden, we're worried about them Ruskies, and their collapsing economy.

Oh, I see.

[canuck_conservative]

Putin better take Trump’s peace deal, or it’s only going to get worse for Russia and its failing Economy.

[circlecity]

They’ve been saying Russia’s economy is one the verge of collapse for 3 years now.

[BeauBo]

(Russia) “is over 50% smaller than the US”

Economically, it is smaller than either California or Texas.

[Fairhairedboy]

Your warmongering days are almost over.

[Old West Conservative]

The disrespect for President Trump in the lead graph

PRESIDENT Vladimir Putin and merely Donald Trump without his proper title

typical drive-by media disrespect for 45-47

[Old West Conservative]

Diogenes had better odds than your odyssey, unfortunately. Best of luck Freeper Friend!

[kiryandil]

Words of wisdom from the Boss of FR:

https://freerepublic.com/focus/news/4291059/posts?page=49#49

[Old West Conservative]

It’s perfectly fine to use unnamed sources in a news story.

Sadly, the real problem is that the user of the sources — might simply be a pathological liar.

In other words, a member of a legacy major media outlet.