“Don’t fall”: Putin is trying to stop the industrial decline
Since the start of the full-scale war, the level of business activity in russia’s manufacturing industry has plummeted to record lows. In response, putin instructed the government and central bank to “prevent” a decline in production in 2025. Measures typical for the russian economy are being proposed, including “cluster platforms,” “industrial mortgages,” and support for “priority projects.”
▫️ These statements are yet another populist attempt to calm the population and create an illusion of control. In reality, the sanctions imposed on russia are gradually draining its economy: the country is losing key markets and facing numerous technological and financial restrictions. Meanwhile, the high key interest rate makes active lending impossible, and attracting investments is becoming increasingly difficult.
▫️ It is telling that similar rhetoric was already heard from putin last December regarding the coal industry — but after loud promises, the situation only worsened.
kremlin is directing all resources towards its aggressive war against Ukraine instead of addressing economic issues. As a result, russian economy continues to decline, and these loud statements remain nothing more than empty words.
