Ukrainian military operations aimed at destroying the industrial infrastructure of the Russian Federation have resulted in significant economic losses for the aggressor, estimated at approximately $10 billion. This was stated by the Commander-in-Chief of the Armed Forces of Ukraine, Oleksandr Syrskyi. According to him, direct losses to Russian industry already exceed $1.3 billion, while indirect losses related to disruptions in logistics and destabilization of the processing sector amount to at least $9.5 billion.
This is reported by Business • Media
Deterioration of the Economic Situation in Russia
The head of Sberbank, German Gref, openly warned of the threat of a “perfect storm” for the Russian economy. He noted that high interest rates are causing businesses to postpone investments, while the unstable exchange rate of the ruble creates additional difficulties for budget revenue. Labor productivity in Russia significantly lags behind that of developed countries, with a gap of 40% to 75%. At the same time, there is a risk of halting operations at several metallurgical enterprises, which could further exacerbate the economic crisis in the country.
“The head of Russia’s Sberbank, German Gref, has already warned of a ‘perfect storm’ in the Russian economy, as high loan rates force businesses to postpone investments, the ruble’s exchange rate against the dollar threatens the filling of the Russian budget, and labor productivity in Russia lags behind that of developed countries by 40-75%. There is also a risk of halting operations at several metallurgical enterprises.”
Depletion of Financial Reserves and Acknowledgment of Problems by Russian Leadership
During a plenary session of the St. Petersburg Economic Forum, Russian President Vladimir Putin acknowledged the existence of risks of stagnation and recession in the Russian economy, emphasizing the need to prevent them. In turn, the head of the Central Bank of Russia, Elvira Nabiullina, stated that the resources that allowed the Russian economy to demonstrate growth amid the war against Ukraine and sanctions are effectively depleted. In particular, during the war, the liquid assets of the National Wealth Fund have decreased threefold to 2.8 trillion rubles. If oil prices remain low and the ruble’s exchange rate stable, these reserves could be completely exhausted by 2026.