Vladimir Putin is nervous. Almost three years into his war in Ukraine, the Russian president is increasingly concerned about the state of the economy.
The cost of borrowing has surged to painful levels, as interest rates of 21pc pile pressure on companies. The strain is such that Putin has reportedly been scolding officials over a drought in private investment.
Unsurprisingly, Russia’s oligarchs are squirming. Igor Sechin, the boss of Rosneft, and Oleg Deripaska, the billionaire aluminium magnate, are among those who have publicly criticised high interest rates.
Deripaska warned in 2023 that Russia could soon run out of money, and other senior officials are also beginning to ask themselves the same question.
The country’s wealth fund is being depleted, with the liquid portion of assets now down to just $38bn (£30bn), from roughly $100bn at the start of 2022.
Russia’s economic resilience has surprised many, signs of fragility are starting to emerge.
The cost of borrowing has surged to painful levels, as interest rates of 21pc pile pressure on companies. The strain is such that Putin has reportedly been scolding officials over a drought in private investment.
Unsurprisingly, Russia’s oligarchs are squirming. Igor Sechin, the boss of Rosneft, and Oleg Deripaska, the billionaire aluminium magnate, are among those who have publicly criticised high interest rates.
Deripaska warned in 2023 that Russia could soon run out of money, and other senior officials are also beginning to ask themselves the same question.
The country’s wealth fund is being depleted, with the liquid portion of assets now down to just $38bn (£30bn), from roughly $100bn at the start of 2022.
Russia’s economic resilience has surprised many, signs of fragility are starting to emerge.
2 days ago
