WaPo: Financiers warn Putin that economic crisis could come as early as summer
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Russian financiers have warned the Kremlin that Russia could face an economic crisis as early as summer due to sanctions and the continuation of the war, the newspaper Washington Post.

"Even without additional risks to oil exports, Russian financial officials are sending letters to the president with increasing urgency Vladimir Putin, warning of a possible crisis by the end of the summer, said a source who is in contact with these officials and spoke on condition of anonymity due to the sensitivity of the topic. They warn that falling revenues without new tax increases will mean a further increase in the budget deficit, while the Russian banking system is under increasing pressure from high interest rates and massive corporate borrowing to finance the war," the publication said.

One of Moscow's top executives said that the crisis could erupt in "three to four months."

According to him, real inflation is much higher than the officially declared 6%, and he cited the record number of restaurant closures in Moscow since the pandemic and the forced layoffs of thousands of employees due to rising costs as signs of tension in the economy.

Craig Kennedy, a former vice president at Bank of America Merrill Lynch and a Harvard University researcher, believes that Russia is becoming increasingly vulnerable to economic pressure. According to him, oil revenues are falling, lending is overheated, and Moscow is aware that the situation is likely to get worse in 2026.

The Washington Post emphasizes that the threat of an imminent crisis has not yet affected Putin's position and his maximalist demands in the war.

  • Back in October, Ukrainian intelligence stated that russia will face a crisis in 2026 due to the exhaustion of the safety margin.
  • In December, the Washington Post wrote that the real economic situation in Russia is much worse than the Kremlin wants to show. The country has exhausted its domestic financial reserves, and sanctions are beginning to hit the most vulnerable places: the budget, banks, and household incomes.