The Kremlin under severe economic pressure

According to financial analysts, the Russian economy is showing significant signs of slowing down in certain sectors, as it grapples with declining growth and high inflation.

The Central Bank of Russia has raised its interest rates to 21%, a level not seen in two decades, as Moscow struggles to contain the economic fallout from its invasion of Ukraine and a barrage of Western sanctions.

Inflation is more than twice the government's target of 4%, partly due to the massive war-related expenditures, while the value of the rouble has plummeted in recent months.

Russia has massively increased its military spending following its invasion of Ukraine. This spending has allowed the economy to defy predictions of a prolonged recession, but it has also led to severe labour shortages and persistent inflation.

(MH with FM-Source: Photo Agency: ©Unsplash)