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The Russian economy is facing a backlash concerning the ongoing war in Ukraine. And, the cost of the economy has been laid bare by the intelligence of the United Kingdom. Higher interest rates are emerging and are soaring inflation. It is difficult for Russian President Vladimir Putin to keep up with the military spending at present, states a report from the Ministry of Defence(MoD).
According to the recent updates regarding the conflicts of the war, which primarily began with Russia’s invasion more than 3 years ago and at that particular time, the interest rates were reportedly at a staggering 21% – which is also said to be their highest in more than 20 years. Before the war, they were at 8.5%.
Currently, the inflation is at 10.1%, which is still a way more higher than the Central Bank of Russia’s target of 4 %
Adding more to that, the value of the ruble has also taken a hike compared to the US dollar and it has made the Russian oil as well as the gas exports more expensive.
