The ongoing war in Ukraine is really starting to take a heavy toll on Russia’s economy, and UK intelligence reports are shining a light on just how bad things are for the Kremlin.
Things are looking rough for Vladimir Putin, as Russia’s Central Bank (CBR) continues to wrestle with sky-high inflation. Interest rates in Russia have soared to a whopping 21%, while in the UK, they’re sitting at a much more manageable 4.75%. And that’s not all — Russia is also facing labor shortages and rising government spending, which is only making things worse.
In an attempt to get the economy back on track, officials have even been forced to lower the value of the ruble, hoping to stabilize things. But despite their efforts, it seems the country is still in a tough spot.
The Ministry of Defence (MoD) reported, “Russian businesses are starting to speak out against the high interest rates, but inflation is still a major issue.” And things aren’t looking better anytime soon. The ruble’s value took a big hit, most likely because of sanctions on Gazprombank, along with ongoing signs of a struggling economy.
The MoD went on to say that by keeping interest rates where they are, the Central Bank is only adding to the economic imbalance, with inflation running high, labor shortages, and the government’s hefty spending spree.
Meanwhile, across the border, the UK is stepping up its support for Ukraine. With the war’s third anniversary approaching, the UK has pledged an additional £4.5 million to help Ukraine with documenting war crimes, investigating, and prosecuting those responsible. This is just the latest boost to Ukraine’s defense, following a £225 million package of military aid announced last month, and a promise of £3 billion in military support every year.
On top of that, a £2.26 billion loan has been given to Ukraine, which will be repaid using frozen Russian assets.
So while Putin’s economy struggles to stay afloat, the UK continues to back Ukraine in its fight for survival. The ripple effects of this war are far-reaching, and it’s clear that Russia’s economic troubles are far from over.
