Russia's money tricks wont help: Expert shows why economy is running out of time
Recent trade deals and financial moves show Russiaʼs economic struggles despite official statements. With dwindling reserves and growing expenses its becoming clear that the countryʼs financial tricks cant last forever
In recent months Russiaʼs economic situation shows strange signs - theyʼre trading chickpeas for oranges with Pakistan and asking BRICS summit visitors to bring cash (since credit-cards dont work there anymore)
The countryʼs money problems are getting harder to hide: Vladimir Putinʼs government had to stop selling bonds worth 600-billion rubles cause nobody wanted to buy them. A Chinese rep at BRICS even pointed out that Russia cant pay its fees to the Shanghai group
Rising prices are hitting hard - the ruble lost 1/3rd of its worth since the Ukraine conflict started. The job market is super-tight: about 2% of working-age men are gone due to war losses‚ while others left the country. Companies have to pay more to get workers; which makes everything cost more
High interest rates are eating into profits so much that most Russian industrial firms could soon go bankrupt
The governmentʼs trying to keep people happy with cheap home-loans at 8% (while real rates are around 21%). But this made house prices go up three times since 2020 - looking like a bubble thats gonna pop
Hereʼs what Russia plans to spend money on:
- Military stuff: $142-billion (40% of budget) by 2025
- Secret expenses: 30% more of the budget
- Social projects: $431-billion over 6 years
- Yearly wage increases: 10% minimum
Their big money-maker Gazprom lost $6.8-billion last year instead of helping the budget like before. When Ukraine gas-transit deal ends soon theyll lose another $6.5-billion yearly
The National Wealth Fund (their savings account) is running dry - its down to $54-billion from selling half their gold. At this rate theyʼve got about 18 months before serious trouble starts
