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The Bunker
Why Putin might not be so worried about Russia's economy
Jan 10, 2025
Richard Connolly, a Senior Analyst for Oxford Analytica and author of 'The Russian Economy,' dives into the complexities of Russia's economic landscape amid ongoing conflict. He discusses the Kremlin's mixed feelings about U.S. politics and its implications for sanctions. Highlighting the ruble's status and the surprising resilience of the Russian economy despite war challenges, Connolly examines how heightened defense spending contrasts starkly with the struggles faced by lower-income Russians. The episode reveals an economy that, while troubled, may not be as dire as commonly believed.
34:07
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Quick takeaways
- The resilience of the Russian economy is bolstered by increased government defense spending, allowing consumer spending to persist despite sanctions.
- Uncertainty around U.S. political changes could significantly affect the continuity and stability of military and financial assistance to Ukraine.
Deep dives
Russia's Ongoing Conflict and Economic Strain
Russia's war in Ukraine, now entering its third year, continues to strain the country's resources and economy. Despite Putin's orders for renewed offensives, little significant territorial progress has been made, raising concerns over the sustainability of the war effort. The prolonged conflict has led to substantial financial aid flowing into Ukraine, particularly from the United States, which serves to bolster Ukraine's defense against Russian aggression. However, uncertainty looms regarding the continuity of this support, especially with political changes in the U.S. potentially impacting future military and financial assistance.
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Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode