Putin pledges military strength amid global tensions
Vladimir Putin issued a message on the occasion of Defender of the Fatherland Day. "We will continue to enhance the combat capabilities of the army and navy, their combat readiness as the most important element of ensuring Russia's security," stated the Russian leader.
Today, amidst rapid changes in the world, our strategy to strengthen and develop the armed forces remains unchanged. We will continue to improve the combat capabilities of the army, which is the guarantor of our sovereignty, now and in the future," he said.
He added that he intends to equip the armed forces with new models of weapons and equipment.
On Thursday in Riyadh, there was the first high-level meeting between U.S. and Russian delegations since the onset of the war in Ukraine, a week after Putin had a phone conversation with U.S. President Donald Trump. Neither Kyiv nor the EU was invited to the talks in Saudi Arabia, which centred on the war in Ukraine.
Lavrov reiterated after the talks that Ukraine's NATO membership is unacceptable to Russia, as it poses a "direct threat to Russia's interests and its sovereignty," he said.
He added that Russia will not agree to the presence of NATO troops in Ukraine, which is a key element of the discussed security guarantees following a potential ceasefire. European allies of Ukraine maintain that the decision to deploy any peacekeeping mission will be solely Ukraine's decision.
The Russian economy, despite the conflict with Ukraine, is showing resilience, according to the Kremlin. However, experts warn that this may be an illusion, highlighting potential hidden costs of the war. Russia may find it increasingly difficult to ignore these challenges.
According to "CNN," in 2024, Russia's GDP growth is expected to be 3.8%, surpassing that of the United States and Europe. Unemployment is predicted to reach a record low, and while defence spending is limiting other sectors, it is viewed as a temporary measure.
CNN: Image of Russia's economy controlled by the Kremlin
However, not everyone is convinced of the sustainability of this growth. Elina Ribakova from the Peterson Institute for International Economics believes that the Kremlin carefully crafts the image of the Russian economy. Economic growth is likened to "acting like steroids"—fast but not sustainable. Russia may soon face the repercussions of this strategy, reports "CNN."
Craig Kennedy from the Davis Center for Russian and Eurasian Studies warns of hidden costs of the war. Russia is employing an "off-budget financing scheme," which could trigger a credit crisis. The rising debt of war-related companies could burden banks with toxic debt. Experts emphasize that Western sanctions are starting to have an impact, and Russia may not be able to ignore them much longer.
The Russian economy is grappling with a growing budget deficit, reaching 3.49 trillion rubles in 2024, primarily due to war-related expenditures in Ukraine. Defence spending has surged by 30% and now accounts for 6.31% of GDP. Russia plans to allocate at least 40% of the budget to defence and national security from 2025 to 2027.
