Russia faces mounting economic issues that could prove "unsolvable," a think tank expert says.
This will exacerbate economic imbalances at home, Alexandra Prokopenko wrote in the FT.Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily.
"Instead of hoping that Russia's economic combat power will soon be exhausted, the West must focus on a long-term strategy that will further constrain Putin's war machine and boost Ukraine's own economic resilience."
In boosting spending to such heights, Russian President Vladimir Putin is effectively dismissing brewing economic imbalances as other parts of the budget become squeezed.
By pouring more money into defense, the Kremlin is exacerbating existing economic imbalances," Prokopenko wrote, adding: "Putin faces an unsolvable trilemma of simultaneously maintaining a balanced financial system, meeting social obligations and sustaining defense spending at current levels."
Persons:
Alexandra Prokopenko, —, Prokopenko, Prokopeko, Vladimir Putin, Putin, bode
Organizations:
Service, Carnegie Russia Eurasia Center, Financial Times, Defense, Putin, Kremlin
Locations:
Russia, Europe, Ukraine, Soviet, Moscow, stagflation