Vladimir Putin faces mutiny from Russian companies as economy falters
Russian President Vladimir Putin is facing growing discontent from domestic businesses as the local economy continues to falter under Western sanctions.
Top executives from major companies have previously voiced concerns about the state of the economy, warning that the dire conditions could result in widespread factory shutdowns.
The year 2024 has been characterized by soaring inflation and record-high interest rates, which have climbed to 21%, as much of Russia's resources are being diverted to sustain the war effort.
The UK's Ministry of Defence said: "Criticism of high interest rates is growing amongst Russian business [… ]However, inflationary pressures are also likely intensifying, in part due to the recent depreciation of the ruble. »
The MoD added according to the Express: "In November 2024, the ruble depreciated to its lowest rate against the US dollar since the invasion of Ukraine in 2022 (114 per US dollar). The drop in the ruble's value was almost certainly driven by the announcement of sanctions on Gazprombank, followed by the publication of economic statistics indicating continued overheating of the Russian economy. In response, the CBR announced it would cease the purchase of foreign currencies until 2025."
(QG - The Irish Star / Picture: © Pixabay)