Bloomberg: Economists have started advising Russia to end the war

Russian and international economists are increasingly stating that Russia should end the war against Ukraine due to growing economic problems. From constant drone attacks to economic difficulties, the consequences of the conflict are becoming more and more tangible. This is according to reports Bloomberg.

Deep inside Russia, including Moscow, the economic consequences have begun to be felt. From households cutting back on food spending to steel, mining, and energy companies.

"Prices are now rising faster than wages," 27-year-old Olena, an event company manager from the Moscow region, told the publication.

This differs from the previous stage of the war, when GDP growth was driven by investments related to the defense sector. At that time, this led to an almost 20% increase in wages in 2024 and boosted consumer demand, while also intensifying inflationary pressure.

In the absence of a ceasefire agreement, Russian fuel supplies in the first half of November fell to their lowest level since the invasion of Ukraine began.

"The immunity of the Russian economy is severely weakened. A systemic crisis may not occur in 2026, but a steady deterioration of economic conditions will continue," said Oleg Buklemishev, head of the Center for Economic Policy Research at Lomonosov Moscow State University.

The consequences are amplified precisely as the U.S. pressures to limit oil and gas revenues to Moscow. The Trump administration has stepped up efforts aimed at achieving a ceasefire.

"Based on general economic indicators, it would be in Russia's interest to stop the war now. However, to want to stop the war, one needs to see the edge of the abyss. Russia has not yet reached it," said Alexander Gabuev, director of the Carnegie Russia Eurasia Center in Berlin.

• A report by the French Institute of International Relations indicates that the Russian economy is losing momentum and is entering a phase of stagflation, increasingly resembling the Iranian model – with prolonged stagnation, low modernization, and dependence on China.