The joint Russian-Belarusian Zapad-2025 military drills ended yesterday, with Vladimir Putin attending the final day. However, the drills were held in Nizhny Novgorod region rather than Belarus, and Putin participated only formally before returning to Moscow.
In Moscow, Putin convened officials for the second time this month to discuss the formation of the 2025 budget, acknowledging the dire economic situation and freezing social spending. GDP growth reached just 1.1%, falling short of Kremlin expectations. Russia’s Economy Minister even warned of an impending recession.
The federal budget is experiencing a serious deficit. Instead of the planned $14.6 billion for the year, by mid-year it had already surpassed $60 billion, mainly due to falling oil prices and the effect of Ukrainian sanctions, together with high military expenditures reaching 6.3% of GDP.
Despite this, the Russian authorities do not intend to end the war against Ukraine, and the financial burden is increasingly being passed on to the population through rising taxes, utility rates, and inflation. Russians are seeing rising prices for basic goods and declining incomes. Official rhetoric, however, still claims the situation is stable, while defense spending in 2025 may actually increase.
On the front, Russian forces continue attacking in the Pokrovsk, Novopavlivka, and Kostiantynivka sectors, as well as near Kupiansk. Ukrainian Armed Forces are grateful to volunteers and donors for drone deliveries, which significantly bolster defense.
Overall, Russia’s economic situation is deteriorating due to the war, and the state shifts the consequences onto its citizens. Despite promises by some politicians of a quick end to the conflict, the Kremlin appears committed to continuing hostilities.
