War with Ukraine pushes Russia to financial collapse – WP
23 December 10:09
Russia is facing serious economic difficulties due to the war in Ukraine, and the situation may worsen significantly in 2026.
This is reported by "Komersant Ukrainian" with reference to The Washington Post .
Despite the statements of US President Donald Trump that Russia allegedly maintains an advantage in the war against Ukraine, the economic situation in the country shows the opposite.
Russian dictator Vladimir Putin has spent a significant portion of the cash reserves and borrowed funds that previously covered military spending, and new financial challenges lie ahead.
Impact of sanctions on the economy
New tough US sanctions against Russia’s oil sector are widening the budget deficit and creating additional risks for the financial system.
The restrictions have affected the largest companies, including Rosneft and Lukoil, forcing Moscow to offer discounts on oil above $20 per barrel. Experts say that the oil and gas industry is slipping into crisis, and the new measures only accelerate this process.
Possible banking crisis
There are risks of non-payments and a banking crisis next year, even if the Russian dictator maintains a hard line in negotiations to end the war.
Economists emphasize that 2026 may be the first year when the war will be really hard on the Russian economy.
Reaction of the elite and society
At the same time, most members of the Russian elite do not expect massive social protests or the impact of economic difficulties on the Kremlin’s political decisions.
