Business

An associate of Vladimir Putin has warned that Russia is headed for collapse, as most companies may be forced to shut down due to rising interest rates.

Sergey Chemezov, CEO of Rostec, Russia's largest arms producer, criticized the record-high interest rates, which have reached unprecedented levels.

"There is no 20 percent profitability anywhere. Maybe in the drug trade, but even the sale of weapons does not bring such a profit," he said.

"It is simply not profitable for enterprises to use borrowed funds, as I have already said many times. It is just that if we continue to work like this, then practically the majority of enterprises will go bankrupt," he added.

Sergey Chemezov is not the only leader sounding the alarm about the country’s economic situation, where the vast majority of resources are directed toward the conflict in Ukraine.

Billionaire Alexey Mordashov, the main shareholder of Severstal, also warned that interest rate hikes have "gone too far."

Meanwhile, Russia’s central bank indicated that inflation rates are expected to continue climbing.

(QG - Source : Daily Express / Picture: © Unsplash)