Friday14 March 2025
podrobnosti.org.ua

The Telegraph: After three years of full-scale war, the Russian economy is starting to show signs of fragility.

Nearly three years after the onset of the full-scale invasion of Ukraine, signs of economic weakening have begun to emerge in Russia.
The Telegraph: Российская экономика начала проявлять признаки уязвимости после трех лет полномасштабной войны.

According to reports from Kontakty.UA, The Telegraph has noted that the cost of borrowing has significantly increased, with interest rates at 21% putting pressure on companies.

The rise in interest rates has faced criticism from Igor Sechin, the head of “Rosneft,” and billionaire aluminum magnate Oleg Deripaska. The so-called Russian welfare fund is depleting.

At the beginning of 2022, the liquid portion of assets was about $100 billion, but it has now dwindled to approximately $38 billion. At the end of last year, the value of the Russian National Welfare Fund was around $117 billion, or about 6.6% of GDP. However, the liquid portion has shrunk to $38 billion after a significant amount was used to cover everyday expenses.

According to KSE, the liquid assets of the fund, primarily held in Chinese yuan and gold, have decreased by 60% since the start of the war.

“Prices in Russia are rising at 9.5% per year. While this is far from the peak of 17.8% observed immediately after the invasion three years ago, the factors driving prices today are much more concerning,” the journalists believe.