The Russian economy is now eating itself to death as Putin’s war on Ukraine destroys future capacity, former central bank adviser says

While the central bank has cut interest rates to prop up growth, and the Kremlin has taken steps to rein in the budget deficit, Russia’s economic predicament can’t be fixed with monetary or fiscal policies, she wrote. But Putin can’t afford to climb back down the mountain as the economy has becoming increasingly reliant on the defense sector, while a military demobilization would likely trigger an economic crisis. The Institute for the Study of War estimated that Ukraine has liberated at least 168.9 square kilometers of territory in the southern part of the country since Jan. 1.

Author: Jason Ma

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