Ending the war against Ukraine could destroy Russia's economy
news.online.ua
Sun, 30 Mar 2025 12:03:24 +0300

Putin is afraid to stop the warAccording to Heli Simola, a senior economist at the Bank of Finlands Institute of Economics, almost half of the aggressor countrys economic growth in 2024 was directly due to warrelated production.It is also impossible to ignore the fact that payments to the families of Russian invaders fighting in Ukraine have increased the wellbeing of some of the poorest regions of the country.Experts predict that the cessation of such stimulation will lead to a decrease in domestic consumption.If Russian dictator Vladimir Putin wants to avoid economic collapse, he will have to continue spending at current levels long after the war is over.
If military spending is cut, it will lead to job losses and general disillusionment in many Russian regions, said Janis Kluge, a Russia expert at the German Institute for International and Security Affairs.
According to Capital Economics forecasts, the decline in spending could lead to slower growth or even recession in Russia in the near term.
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