Analysts at the Institute for the Study of War (ISW) point out that the Kremlin is extending its information campaign to conceal the extent of the negative impact on the Russian economy due to the war in Ukraine.
Source: ISW
Quote from ISW: “The Kremlin continues to conduct an information campaign likely directed towards both domestic and international audiences that aims to conceal the extent to which Russia’s protracted war against Ukraine has negatively affected Russia’s economy.”
Details: Russian Prime Minister Mikhail Mishustin met with Russian leader Vladimir Putin on 7 February to discuss the state of the Russian economy.
Quote: “Mishustin claimed that Russia’s gross domestic product (GDP) rose in 2024 by 4.1 percent largely due to ‘intensive’ growth in Russia’s manufacturing industry – likely referring to Russia’s boost of its defence industrial base (DIB) since the start of its full-scale invasion of Ukraine in February 2022.”
Details: The minister argued that the main contributors to the growth of Russia’s manufacturing industry were machine building, transport engineering, automotive, and computer and electronic equipment.
He also stated that inflation in Russia reached 9.52% in 2024, while Putin declared that as of 3 February 2025, inflation was already 9.9%.
Quote: “Russia’s true inflation is quite higher than the official statistics the Kremlin is willing to publicise, however (several studies indicate that Russia’s inflation rate is closer to 20%).”
Details: Mishustin emphasised the low unemployment rate in Russia in 2024 at 2.5% but only briefly acknowledged the significant labour shortage in Russia as a reason for Russia’s low unemployment rate.
He noted that Russia’s economic growth may be less significant in 2025, as it is very important to stop inflation and ensure long-term economic growth.
Quote: “…likely a signal to prepare the Russian population to expect economic hardships in 2025. Mishustin and Putin also attempted to posture Russia’s economy as stable in the face of international economic pressure. Mishustin claimed that Russia’s fuel and energy complex is adapting and finding new markets.”
Details: Mishustin claimed that the Russian economy has “successfully managed” the “unprecedented sanctions pressure” in recent years, and that anti-Russian sanctions are hurting the countries that imposed them more than the sanctions are hurting Russia. Putin has also tried to present the Russian economy as stronger and growing faster than Western economies.
Quote: “Mishustin and Putin notably did not mention how the Russian Central Bank raised the interest rate to 21% in October 2024 or how Russia has been drawing from its National Welfare Fund to finance its war effort over the last three years.
The liquidity portion of Russia’s National Welfare fund may run out by Fall 2025.”
https://www.pravda.com.ua/eng/news/2025/02/8/7497259
Mafia land can try and conceal anything they want, but they can’t conceal supermarket prices. They tell the real situation in the shithole. Everything has risen in price by 20-90% in a year.
“The Kremlin continues to conduct an information campaign likely directed towards both domestic and international audiences that aims to conceal the extent to which Russia’s protracted war against Ukraine has negatively affected Russia’s economy.”
The mafia gangsters have done great in concealing their country’s economic woes from large parts of the West, with many swallowing their numbers without so much as a suspicion.