Financial collapse of the Russian economy

[AdobeWriter]

I don't know what you are talking about, because at the moment there are no signs that the Russians are slowing down on the front, on the contrary, they are trying to occupy as much territory as possible, considering that the weather conditions are getting worse. Besides, there are no protests in Russia

Well I'd say they seem to be slowing down on a monthly scale, as their Pokrovsk assault is grinding to a bit of a halt the past week. Their favorite tactic of sending a bunch of guys through fog or other bad weather to take a position and then pray to hold it hasn't paid out after that motorcycle convoy OPSEC screwup. They'll probably pick up a bit of speed sooner or later though.

On the protest thing I wanna mention I just watched a street interview and on the question "We're in a war and many people get killed, what do you think?" one guy responded "There ware wars before like Chechnya and Afghanistan and many conscripts died, and everyone were sad, there were even protests. But these guys in Ukraine go there after signing a contract, so it's by their own free will. They go there to make money, so why should we care what happens to them?" Just illustrates the sorta numbness of Russian thinking in the sense of "If it doesn't immediately concern me I'll ignore it and pretend it doesn't even happen"

[MarjorieZimmermanGinger]

When a warring state is unable to even maintain its own armed forces, it's not just a crisis—it's a financial collapse. To avoid becoming a permanent colony of China, Russia has only one option: end the war and save the economy. Which path will Russia choose, given that ending the war in Ukraine is mortally dangerous for both Putin himself and his regime as a whole?

The economy must be saved first because it plays a greater role in maintaining stability. I may not know Russia specifically because we don't live there, but the war has also depleted many resources. China serves as a benchmark because they prioritize economics over political hegemony, which has led to its growing strength, and perhaps many countries should learn from them. I see Russia as overly pursuing global influence, but they haven't strengthened their economic base, which could undermine their grand plans if they don't go well, because at some point, the economy also plays a significant role in a country's progress.

[fruktik]

Good point to describe one of the most important reason of the war against Ukraine. Rusia pretend to protect its neiboring borders from NATO presence, and this was the main reason to annex Crimea. While the war itself has proven that the main reason is to annex more regions. Why? Because Russia need more ressources to reduce relying on gaz and oil mainly. The last agreement between Putin and Trump was about dividing Ukraine resources; Putin will take all the ocuppied regions inside Ukraine, while Trump will take metal resources.

Life in more and more regions has become incredibly poor. In Donetsk, people even have problems with water. Why? Russia has no interest in improving people's lives. This entire adventure was launched for one purpose only: the plunder of territories. Which, frankly speaking, is quite obvious. It will only get worse.

And what have Russian citizens gained from all this? Absolutely nothing. The authorities have gone mad with greed. There are no more easily extractable resources left in the entire country. That's why they've invaded a foreign country.

[Gentle_Soul]

Recently Russia has had a slid in the oil there oil exportion  there oil exportion rate within the past four weeks has fallen up to 20% . Russia is facing a difficult time in there oil market following US and EU santions on there producers and this has made it really difficult for her products to be accessed in the global market and it has also  caused a significant rise in price meking it uncomfortable for buyers. Also the outgoing war is also a contributing factor to the fall of the Russian resources as a lot has been put in to the military to wage the war against Ukraine. All these crisis has led to one way or the other, some potential inherent economic crisis

[Lucius]

~snip~
On the protest thing I wanna mention I just watched a street interview and on the question "We're in a war and many people get killed, what do you think?" one guy responded "There ware wars before like Chechnya and Afghanistan and many conscripts died, and everyone were sad, there were even protests. But these guys in Ukraine go there after signing a contract, so it's by their own free will. They go there to make money, so why should we care what happens to them?" Just illustrates the sorta numbness of Russian thinking in the sense of "If it doesn't immediately concern me I'll ignore it and pretend it doesn't even happen"

It would make sense that all those who fight are mercenaries under a contract, but this is far from the truth considering the stories of (Russian) soldiers who were captured or surrendered and who tell completely different stories. Prisoners, psychopaths and regular salarymen are already an exhausted group, and it is obvious that ordinary people who are promised everything are now taking their turn, and the only thing waiting for them is almost certain death or being disabled.

What can be definitively concluded is that the average Russian does not care too much about what is happening somewhere because it is not a war for them anyway. The only thing that might make them wonder what the hell is going on is if food and basic necessities start to run out and a general mobilization is introduced.

Unfortunately (for Ukraine), it seems that Russia has a major ally in the US who is trying to defeat it politically and of course profit from it.

[coupable]

Good point to describe one of the most important reason of the war against Ukraine. Rusia pretend to protect its neiboring borders from NATO presence, and this was the main reason to annex Crimea. While the war itself has proven that the main reason is to annex more regions. Why? Because Russia need more ressources to reduce relying on gaz and oil mainly. The last agreement between Putin and Trump was about dividing Ukraine resources; Putin will take all the ocuppied regions inside Ukraine, while Trump will take metal resources.

Life in more and more regions has become incredibly poor. In Donetsk, people even have problems with water. Why? Russia has no interest in improving people's lives. This entire adventure was launched for one purpose only: the plunder of territories. Which, frankly speaking, is quite obvious. It will only get worse.

And what have Russian citizens gained from all this? Absolutely nothing. The authorities have gone mad with greed. There are no more easily extractable resources left in the entire country. That's why they've invaded a foreign country.

This was clearly evident from the early bigenning after invading Cremea. Now the citizens in Donetsk and other regions officially ocuppied by Russia are might be forced to live outside those regions because Russia wants the land, so it won't be that really interested to provide life services.

Ukraine was the basket of Europe but now it bacome the basket of Russia after extracting the major regions to become under Russian control. If Russia will succeed to annex those regions officially, Europe will let her down and might get peace agreement with Russia to avoid it invade more countries. Poland next in the list.

[AdobeWriter]

It would make sense that all those who fight are mercenaries under a contract, but this is far from the truth considering the stories of (Russian) soldiers who were captured or surrendered and who tell completely different stories.

Yea. The army made up entirely of kontraktniky(contract soldiers) is just a propaganda excuse for people to conveniently close or at least avert their eyes in a typical Russian manner.

At the same time babushkas in market interviews are baffled by the price hikes of the base of all their meals - the humble potatoes. Welp at least Russia is glorious and victorious once again, right?

Ukraine was the basket of Europe but now it bacome the basket of Russia after extracting the major regions to become under Russian control. If Russia will succeed to annex those regions officially, Europe will let her down and might get peace agreement with Russia to avoid it invade more countries. Poland next in the list.

Ukraine is and will still be the bread basket of the European continent even with the loss of territories. What's lost however is certain recently discovered and undeveloped gas fields, that Russia doesn't exactly need, but desperately wanted for Ukraine to not undercut their gas trade with Europe by becoming a major gas exporter. So instead they went ahead and destroyed most of their gas and oil trade with Europe themselves, like the real chads they are.

Unfortunately (for Ukraine), it seems that Russia has a major ally in the US who is trying to defeat it politically and of course profit from it.

Trump just being a super weak negotiator once again. Always trying to take the path of least resistance, and never thinking for even 5-10 years in the future time frame. He can't pressure Putin without pitting in at least a minor effort, so lets instead pressure our allies as that's the easiest thing to do. As it shapes up America will come out of his term weaker than ever on the international stage.


One thing which is Trump's signature is putting pressure on NATO allies to become stronger and more independent, paying more and more for defense. While that's actually a great thing in of itself and for Europe, Trump simply doesn't seem to understand that the US have actually profited massively from Europe being dependent on them for security in the past 80 years. America has encouraged Europe to rely on them and their military presence while at the same time that gives the US incredible leverage in European politics and business. Increased military spending is a small price to pay for having the entire continent be your ever trusty sidekick, with very rare exceptions like France during the Iraq war of 2003. Now Trump will potentially save some billions of dollars but forever destroy an advantage of US international politics that they have protected and benefited from ever since WWII.

[ovcijisir]

It seems the world is crumbling and can't keep up with the rise in inflation.
Not versed in how Russia economy is runned but from little information I have about other countries
Especially the US, uncertainty and economy instability ois already creeping in
Hence why the Gold Rush few weeks ago. People are searching for safe haven.

Unfortunately I believe you are correct, I also think this is start of one global financial crisis. The times of economic stability and prosperity of the western countries are dawning and it's time to observe what will be next major global power.

[fruktik]

This was clearly evident from the early bigenning after invading Cremea. Now the citizens in Donetsk and other regions officially ocuppied by Russia are might be forced to live outside those regions because Russia wants the land, so it won't be that really interested to provide life services.

Ukraine was the basket of Europe but now it bacome the basket of Russia after extracting the major regions to become under Russian control. If Russia will succeed to annex those regions officially, Europe will let her down and might get peace agreement with Russia to avoid it invade more countries. Poland next in the list.

Remember, Russia will never stop fighting. This is the fundamental principle of how the mafia group maintains power in the country. Just look at the last 50 years. How much of that time has Russia been at peace? Almost never. It has always fought and will continue to do so. The only correct option is to stop this aggressor. To punch them in the teeth so hard that they lose any desire to attack other countries and interfere in their affairs.

[Lucius]

~snip~

Unfortunately (for Ukraine), it seems that Russia has a major ally in the US who is trying to defeat it politically and of course profit from it.

Trump just being a super weak negotiator once again. Always trying to take the path of least resistance, and never thinking for even 5-10 years in the future time frame. He can't pressure Putin without pitting in at least a minor effort, so lets instead pressure our allies as that's the easiest thing to do. As it shapes up America will come out of his term weaker than ever on the international stage.

One thing which is Trump's signature is putting pressure on NATO allies to become stronger and more independent, paying more and more for defense. While that's actually a great thing in of itself and for Europe, Trump simply doesn't seem to understand that the US have actually profited massively from Europe being dependent on them for security in the past 80 years. America has encouraged Europe to rely on them and their military presence while at the same time that gives the US incredible leverage in European politics and business. Increased military spending is a small price to pay for having the entire continent be your ever trusty sidekick, with very rare exceptions like France during the Iraq war of 2003. Now Trump will potentially save some billions of dollars but forever destroy an advantage of US international politics that they have protected and benefited from ever since WWII.

DT, besides being a very bad politician, is also a very bad businessman - these are facts that anyone can verify. In a desperate attempt to leave behind something in the second term (because he did nothing worth mentioning in the first), he is obviously ready to put a lot more at stake than the US should risk losing. Reports from the meeting at which the de facto surrender of Ukraine was presented to EU diplomats drew harsh words from the American and European sides, as it was a betrayal not only of Ukraine's interests, but also of its European allies.

What DT and his clowns don't understand is that such an agreement would create a precedent that would open the door for any crazy president in the future to attack a neighboring country and legally occupy part of it.

Something similar actually already exists from the time of the war in Bosnia and Herzegovina, where the US forced the warring parties to make peace (the Dayton Agreement) by giving the aggressor (the Serbs) 49% of the territory that they had previously ethnically cleansed. Even 30 years later, peace is maintained by the military presence of foreign soldiers and an international representative who has a veto on all decisions.

I just hope that Ukraine and the few reasonable people in the EU will not agree to such an agreement and that they will continue to fight for their country - because everything else is a victory for Russia.

[BitBakerr1]

This was clearly evident from the early bigenning after invading Cremea. Now the citizens in Donetsk and other regions officially ocuppied by Russia are might be forced to live outside those regions because Russia wants the land, so it won't be that really interested to provide life services.

Ukraine was the basket of Europe but now it bacome the basket of Russia after extracting the major regions to become under Russian control. If Russia will succeed to annex those regions officially, Europe will let her down and might get peace agreement with Russia to avoid it invade more countries. Poland next in the list.

Remember, Russia will never stop fighting. This is the fundamental principle of how the mafia group maintains power in the country. Just look at the last 50 years. How much of that time has Russia been at peace? Almost never. It has always fought and will continue to do so. The only correct option is to stop this aggressor. To punch them in the teeth so hard that they lose any desire to attack other countries and interfere in their affairs.

For me any nation that is always involved in war will never have economic balance in their nation there will always be inflation in the country and the citizens will mostly suffer in a nation like that, a peaceful nation always flourish when it comes to economic stability because where there is peace there is usually growth of business and other infrastructures no one will be highly confident to start a business in a country where there is always war.
Russia is a very powerful country, they have a very strong military strength however they should focus more in growing their economy and having peace in their country the citizens don't enjoy war they enjoy peace I think peace should be their focus and not fighting.
To be honest I really don't know why some world leaders enjoy fighting war, what is the gain in fighting war the citizens suffer because of this fighting.

[AdobeWriter]

BTW Russia already rejected the "peace proposal" yesterday, so I don't understand what's the point of Trump pushing it to Ukraine and Europe. Russia rejecting the 28 points which were clearly written by them is another demonstration that they will continue moving the goal post and even if their demands are met, they will just want more.

[Argoo]

Russia's four-year war in Ukraine is rapidly depleting its National Welfare Fund, which was being built up for the war with NATO. While it stood at $113.5 billion in 2022, by 2025 it had already shrunk to $51.6 billion. Russia's gold reserves decreased by 57% during this period, from 405.7 tons to 173.1 tons.

According to forecasts, Russia could sell up to $30 billion in gold (approximately 230 tons) in 2025, and at least another $15 billion (115 tons) in 2026.

Such large-scale monetization of the precious metal effectively turns it into a resource for plugging budget holes, supporting corporate liquidity, and preventing the ruble from collapsing.

Russia's military strength is even worse off. As of today, according to the Ukrainian Armed Forces, Russia's irreparable losses in soldiers and officers amount to 1,169,690.
The following have also been destroyed:
- 11,373 tanks,
- 23,628 armored combat vehicles,
- 34,709 artillery systems,
- 1,550 multiple launch rocket systems,
- 1,253 air defense systems,
- 430 aircraft,
- 347 helicopters,
- 85,174 UAVs,
- 3,995 cruise missiles,
- 28 ships (boats),
- 68,351 vehicles and tanker trucks,
- 4,008 special-purpose vehicles.
Russia's armored vehicle situation is particularly dire right now. Almost all of the new and Soviet-era armored vehicles have been used up, with museum-quality equipment and models of equipment featured in feature films sent to the front lines. Currently, Russian soldiers are storming Ukrainian positions primarily on motorcycles, golf carts, civilian cars, and even electric scooters. This is partly due to the approximately 20-kilometer dead zone between the opposing sides, where a swarm of drones destroys everything that moves. Therefore, the Russians are trying to reach Ukrainian positions as quickly as possible. However, on average, only about one in ten soldiers makes it. Such are the peculiarities of the current war.

[DrBeer]

A perfect example of how whatever Russia undertakes will not be of high quality. And the attempt to invent “friends” for itself is just another fake or an attempt at self-hypnosis.
 
"The Russian Ministry of Finance has acknowledged that the BRICS countries do not want to abandon the dollar, and businesses in Russia itself are preparing for a prolonged period of stagnation. Russian Finance Minister Anton Siluanov has acknowledged that Moscow's attempt to organize its own cross-border payment system within BRICS has reached an impasse. Member countries see no reason to abandon the dollar.“

Not long ago, there was hysteria about ”BRICS will kill the dollar,“ ”the dollar has been sentenced,“ ”we have united against the West," blah blah blah... And today, this is the reality
Now Russia is a primitive raw materials appendage of China, and apparently India. Which is groveling before Iran and North Korea, begging them for weapons and manpower

[free-bit.co.in]

A perfect example of how whatever Russia undertakes will not be of high quality. And the attempt to invent “friends” for itself is just another fake or an attempt at self-hypnosis.
 
"The Russian Ministry of Finance has acknowledged that the BRICS countries do not want to abandon the dollar, and businesses in Russia itself are preparing for a prolonged period of stagnation. Russian Finance Minister Anton Siluanov has acknowledged that Moscow's attempt to organize its own cross-border payment system within BRICS has reached an impasse. Member countries see no reason to abandon the dollar.“

Not long ago, there was hysteria about ”BRICS will kill the dollar,“ ”the dollar has been sentenced,“ ”we have united against the West," blah blah blah... And today, this is the reality
Now Russia is a primitive raw materials appendage of China, and apparently India. Which is groveling before Iran and North Korea, begging them for weapons and manpower

I saw this news yesterday and as I understand it he just wanted to say that BRICS is not ready to completely abandon USD. He did not say that they would abandon or stop the dedollarization process, and those are two completely different things.

Another sign that they are still pushing for de dollarization despite the challenges faced is that intra bloc payments in local currencies have increased from 20% in 2022 to 50% in 2025.

Admittedly, completely abandoning the US dollar remains a distant dream due to economic benefits and geopolitical barriers. But the dedollarization is still going on quietly.

[DrBeer]

A perfect example of how whatever Russia undertakes will not be of high quality. And the attempt to invent “friends” for itself is just another fake or an attempt at self-hypnosis.
 
"The Russian Ministry of Finance has acknowledged that the BRICS countries do not want to abandon the dollar, and businesses in Russia itself are preparing for a prolonged period of stagnation. Russian Finance Minister Anton Siluanov has acknowledged that Moscow's attempt to organize its own cross-border payment system within BRICS has reached an impasse. Member countries see no reason to abandon the dollar.“

Not long ago, there was hysteria about ”BRICS will kill the dollar,“ ”the dollar has been sentenced,“ ”we have united against the West," blah blah blah... And today, this is the reality
Now Russia is a primitive raw materials appendage of China, and apparently India. Which is groveling before Iran and North Korea, begging them for weapons and manpower

I saw this news yesterday and as I understand it he just wanted to say that BRICS is not ready to completely abandon USD. He did not say that they would abandon or stop the dedollarization process, and those are two completely different things.

Another sign that they are still pushing for de dollarization despite the challenges faced is that intra bloc payments in local currencies have increased from 20% in 2022 to 50% in 2025.

Admittedly, completely abandoning the US dollar remains a distant dream due to economic benefits and geopolitical barriers. But the dedollarization is still going on quietly.

You can spend a long time trying to convince yourself that this is not the case, or that it is not entirely true, or something else... The problem is that for many members of BRICS (the economic union), the dollar is not only not dangerous, but also beneficial. That is if we are talking about the ECONOMY, but when the members of the economic union start to push political ideas, aimed not at improving the economic performance of the UNION, but at satisfying their political complexes, the SMART members understand this and distance themselves from their toxic neighbors in the union. This is exactly what we are seeing now! And the funniest thing is that ALL BRICS members are happy to trade in dollars, because it is convenient and profitable. You can't buy ANYTHING on the external global market with rubles and Iranian rials! Russia itself sells everything only for dollars! Remember how much pompous squealing there was from the Kremlin when they supposedly said they would sell oil and gas “only for rubles”?  And where are these rubles? Who actually buys paper rubles, which are backed by nothing but a deteriorating military economy? That is why oil and gas are sold silently for dollars, so as not to embarrass themselves again. Because Russia cannot buy critically important goods on the world market for Iranian rials! And BRICS is not a self-sufficient union and is VERY dependent on Western suppliers of goods, technologies, services, etc.
Conclusion: let's look at the world through the eyes of a realist, not a fantasist

[yslyv]

The Russian military sector has ceased to support the economy, and the country is facing financial collapse and rising prices. For the first time in three and a half years of military intervention in Ukraine, the Russian military-industrial complex has ceased to be the main driver of the economy. Production of tanks, armored vehicles, and metal products has plummeted: in September, the decline ranged from 6% to 20%.

Rosstat conceals the scale of the crisis, but even the official figures are staggering: GDP growth has stalled, budget revenues have fallen by 21%, and the deficit is five times higher than planned.

Starting January 1, the Kremlin is raising the VAT rate to 22% and eliminating benefits for small businesses, effectively siphoning off middle-class funds to finance the war. Entrepreneurs are closing their businesses, and Putin can no longer control the situation even in the food market. Gazprom has shifted its losses to the population, the Ministry of Finance is cutting spending, and new US sanctions against Rosneft and Lukoil are depriving Russia of the Indian market. The only major buyer is China, but on October 30th in Busan, Trump and Xi will discuss the future of the aggressor country – without Russia.

When a warring state is unable to even maintain its own armed forces, it's not just a crisis—it's a financial collapse. To avoid becoming a permanent colony of China, Russia has only one option: end the war and save the economy. Which path will Russia choose, given that ending the war in Ukraine is mortally dangerous for both Putin himself and his regime as a whole?

I disagree. We’re talking about a country that continues to stand strong and produce despite the full scale hostility of the entire west despite economic sanctions, financial pressure and an ongoing information war...
Russia is a energy giant, a military superpower, a country that maintains its space program and sustains its own industry and technology. While there are economies that struggle to even breathe despite western support, Russia manages to emerge from every sanction more resilient and more productive.

[allthebitandbobs]

When you open world against people who are bringing most of the money to you, then you are going to end up with a filature, that's not really a shocker. Russia has a lot of natural resources for sure, but they were making money by selling that resource, when most of the world said no thanks, and banned them, then they would have to sell for a lot cheaper to other places, which means losing money.

On top of that, war has cost, while I understand Ukraine isn't doing great neither obviously, Russia isn't doing great neither and Ukraine was never a rich nation, plus they are getting money from the west now thanks to this, whereas Russia was much bigger and now they are doing much worse. This was expected result of the attack.

[MFahad]

Recently Russia has had a slid in the oil there oil exportion  there oil exportion rate within the past four weeks has fallen up to 20% . Russia is facing a difficult time in there oil market following US and EU santions on there producers and this has made it really difficult for her products to be accessed in the global market and it has also  caused a significant rise in price meking it uncomfortable for buyers. Also the outgoing war is also a contributing factor to the fall of the Russian resources as a lot has been put in to the military to wage the war against Ukraine. All these crisis has led to one way or the other, some potential inherent economic crisis

Yes, Russia's oil exports have fallen by 20% due to a shortage of oil. Which has had negative impact on country's economy. Russia has run into difficulties in global market. Since the US and the European Union are tied to Russia and have made things difficult for producers due to the oil shortage in Russia. And Russia's war with Ukraine has greatly weakened Russian resources Because Russia's budget. which also comes from oil, is spent on war expenses. Such an economic situation has made Russia unstable. If this continues Russia will face more challenges in future. Russian government should need to focus on their economy and take well-planned steps to confront this so that it does not get caught in further trouble. If they do this, access to oil and its price will not increase further.

[Lucius]

An agreement was finally reached on the complete cessation of oil and gas purchases in the EU from Russia. Before the war, the EU paid Russia about 12 billion EUR per month for this, and today it pays about 1.5 billion EUR. However, a complete ban will follow gradually until September 30, 2027, if gas storage facilities are filled.

Unfortunately, the EU is still to a lesser extent dependent on Russian oil (Hungary and Slovakia), and the rest on gas. In addition, an agreement was reached on the use of seized Russian property, which is mostly located in Belgium - and today news emerged that the US has agreed with the EU proposal. Allegedly, it is as much as 140 billion EUR that will be directed to Ukraine, which will certainly be painful for Russia.