#64 Janis Kluge: How Long Can Russia Afford The War & Can Russia Afford Peace?

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In the current war in Ukraine, there is likely no other topic that would be both so important and so wildly misunderstood as the issue of the Russian economy. The importance is quite obvious - without a functioning economy, Russia wouldn't be able to finance the war. But in terms of how the economy is actually doing and how will it do in the future, that’s much less clear - and the views range from Russian economy being an unstoppable juggernaut with sanctions only making it stronger to the Russian economy collapsing since the first day of the war - neither of which are actually accurate. After all, most people are not economists and this is largely an unprecedented situation.

And so, I decided to speak with someone who both knows more about this than anyone else and who is able to give a very pragmatic and objective view of where we stand: an expert on the Russian economy Janis Kluge, from the German Institute for International and Security Affairs. And so in this conversation, we talk about how the Russian economy is actually doing. How long can Russia actually afford to finance the war, what kind of economic damage it would take to force to rethink its plan for Ukraine and whether that is likely to happen, whether the Russian economy is overheating and what does that really mean or what would happen if the war ends and the money stops flowing into the economy - and whether the Russian government can afford that.