Russia's economy suffers but continues war efforts, says Latvian Minister
- Experts note a significant economic slowdown in Russia after over 40 months of war.
- Latvian Foreign Minister warns that Russia can sustain its military efforts despite economic suffering.
- The long-term stability of Russia's economy remains uncertain amid military prioritization and public discontent.
Russia's economy faces a significant downturn as the country has prioritized military expenditures over its civilian economy for over 40 months since the beginning of the all-out invasion of Ukraine. Despite initial resilience against Western sanctions, experts suggest that Russia is nearing a correction that could halt recent growth. Economic officials including Elvira Nabiullina have expressed concerns over overheating and high inflation, prompting measures such as interest rate hikes, now standing at 20 percent. Latvian Foreign Minister Baiba Braze emphasized that Russia is still capable of sustaining its military operations, indicating priorities that overshadow civilian needs. The ongoing war effort in Ukraine continues to define Russia's economic strategies, with estimates predicting substantial defense spending in the future, even as household budgets shrink and public discontent potentially rises. Meanwhile, global responses, including sanctions, persist, highlighting international concerns regarding Russia's long-term intentions in the region, especially toward NATO nations. Overall, while Russia's economic struggles are tangible, there’s little indication that these challenges will lead Moscow to reconsider its aggressive military posture.