Putin attempts to conceal Russia’s economic problems by manipulating facts – ISW

This is stated in a report by the Institute for the Study of War (ISW), as cited by Ukrinform.

Analysts note that Putin described Russia’s economy as “stable and reliable” but acknowledged that inflation had reached 9.2–9.3% and blamed the Central Bank for this.

“Putin insinuated that the Russian Central Bank and its head, Elvira Nabiullina, mishandled rising Russian interest rates and noted that the Russian government’s economic policies had ‘some shortcomings,’ likely in an attempt to deflect blame for rising interest rates and inflation on another Russian official,” the report says.

The ISW report also mentions that the Russian Central Bank recently announced that it expects Russia’s GDP to grow by 0.5 to 1.5 percent in 2025. Russia’s interest rate is currently 21%, and officials suggest it may increase to 23% following the Central Bank’s meeting on December 20.

Putin claimed that Russia is a strong state that has only become stronger and more independent over the past two to three years of full-scale invasion of Ukraine.

“Putin claimed that Russia is able to ‘stand confidently on its own two feet’ in terms of its economy and noted that Russia remains one of the world’s main food exporters, neglecting to mention Russia’s continued illegal export of stolen grain from occupied Ukraine,” analysts added.

The ISW believes that Putin is trying to divert the attention of the Russian people from the economic and other consequences of the war in Ukraine, unwilling to acknowledge the impact of Western sanctions, which are pressing on the Russian economy.

As reported by Ukrinform, The Economist magazine noted on December 19 that the Ukrainian economy is still a quarter smaller than it was in 2021, but for the first time since the full-scale invasion by Russia, it is healthier than Russia’s economy by some key indicators.