Russia's desperate to hide the real impact of war on its economy - ISW

The leadership of the terrorist country of Russia continues its information campaign to hide the real impact of war against Ukraine on the Russian economy. The Kremlin's attempts are aimed at both domestic and international audiences.

Kremlin officials boast of low inflation and talk about the growth of gross domestic product. This is stated in the analysis of the Institute for the Study of War.

On February 7, Russian Prime Minister Mikhail Mishustin met with dictator Vladimir Putin to discuss the state of the economy. The head of the government said that Russia's GDP grew by 4.1% in 2024, mainly due to "intensive" growth in Russia's manufacturing industry.

Mishustin said that the main sources of growth in Russia's manufacturing industry were machine-building, transport engineering, automotive, and computer and electronic equipment sectors. He also told the dictator that inflation in Russia reached 9.52% in 2024, while Putin himself said that inflation was already at 9.9% as of February 3, 2025.

The ISW notes that real inflation in Russia is much higher than the official statistics that the Kremlin is willing to mould. Several studies indicate that the inflation rate in Russia is close to 20%.

Russian officials also talk about a low unemployment rate in Russia in 2024 of 2.5%. At the same time, Mishustin noted that economic growth in Russia may be lower in 2025. According to analysts, this is said to prepare the Russian population for economic difficulties in 2025.

Mishustin and Putin also tried to position Russia's economy as one that is resilient to international economic pressure. Mishustin said that Russia's fuel and energy complex is adapting and finding new markets. In particular, the Russian prime minister revealed that the Russian economy has "successfully managed" with sanctions pressure in recent years and that anti-Russian sanctions are causing more damage to the states that imposed them than to Russia.

As a reminder, Ukrainian drones target oil refineries and tank farms in Russia almost daily. One of the main goals of such attacks is to destroy refineries to the point when the Russian economy collapses.

Earlier, it was reported that the Kremlin continues its efforts to shape domestic and global expectations regarding the upcoming dialogue between dictator Vladimir Putin and US President Donald Trump. They made it clear that the "main thing" in the alleged peace talks on Ukraine for Russia is "not the territories" but the elimination of the "root causes" of the war.

Only verified information is available on our Telegram channel OBOZ.UA and Viber. Do not fall for fakes!