How Putin Pretends to Control the Situation in Russia’s Economy
Russian dictator Vladimir Putin is attempting to reassure the Russian population amid growing concerns about the country’s economy. During a meeting on economic issues, Putin announced that social payments and benefits in Russia would be indexed to the actual inflation rate of 9.5%. However, this indexation falls far short of keeping up with the rapid rise in prices across the country.
Putin has labeled the record budget deficit for 2024 as “acceptable” and claimed that “developed economies” are performing even worse. He also boasts about significant “additional revenues” to highlight Russia’s continued influence in the energy market. However, the prospects for these revenues remain questionable, especially following sanctions targeting Russia’s oil “shadow fleet.”
Previously, the Center reported that during Russia’s full-scale war against Ukraine, the National Welfare Fund of the Russian Federation shrank by two-thirds.
