Putin's Economy is Crumbling: Why the War Threatens Russia's Collapse
Journalist
Anna Tkach
15.08.2025 - 06:05
932 viewed
According to hvylya.net: According to journalists from the publication, the war in Ukraine has also activated Russia's financial system. Putin signed a law that compelled banks to issue preferential loans to defense contractors regardless of their profitability. Furthermore, the country's corporate debt increased by 71% and was valued at nearly 36.6 trillion rubles – most of the debt is related to sectors connected to the war and technologies.
Analysts pointed out that the war has begun to negatively affect the economy of Russia and Vladimir Putin. According to Bloomberg, under the weight of war, sanctions, and a massive military budget, the Russian economy has started to falter. Even with external resilience, the economy is cracking, indicating a crisis within the war economy.
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