Trump's presidency: Kremlin hopeful, oligarchs skeptical
The election of Donald Trump as the 47th President of the United States was positively received in the Kremlin, especially in the context of the potential resolution of the war in Ukraine. Oligarchs, when asked about their views by Bloomberg, do not share Moscow's optimism, yet they are reluctant to criticize the state authorities openly.
Since the invasion of Ukraine began in February 2022, Russia has faced sanctions that—contrary to the official signals of Russian propaganda—have impacted the country's economy. This is evident, for instance, in the central bank's increased interest rates aimed at controlling inflation, which is also understated in official communications. Nonetheless, the effects of rising prices, such as those for butter, are surfacing on social media.
Sanctions, however, are a double-edged sword, and Western economies, which decided to swiftly cut off the cheapest possible Russian energy resources, have also suffered. The rise in inflation in the United States, among other countries, was one of the campaign issues for Donald Trump, who stated he preferred to use high tariffs rather than restrictions.
The election of the Republican as the 47th President of the United States was warmly received by the Kremlin. Positive signals from Trump regarding the end of the war in Ukraine were mentioned, among others, by the press secretary of Russian leader Vladimir Putin. However, what the Republican will do during his second term in the White House remains speculative.
The Kremlin's optimism does not seem to be shared by the oligarchs. Bloomberg asked Russian billionaires if, among other things, they expect sanctions to be eased after Donald Trump takes office. They responded, with anonymity preserved, that they do not expect the restrictions to be lifted even in the event of a truce in Ukraine.
Billionaires see things differently than Russian propaganda
The agency also asked billionaires what they thought of the government's September forecasts, which projected economic growth over the next six years to gradually reach from 2.5% in 2025 to over 3% in the period 2028-2030. They also believe that the Kremlin's optimism in this respect is unwarranted.
According to Bloomberg's interviewees—who, it should be noted, face higher tax burdens due to the state's "defence" expenditures—Moscow should acknowledge that there is a "war" in Ukraine, not a "special military operation", thereby making it easier for society to understand the source of such high inflation.
Admitting to waging war is also discussed in the context of raised interest rates. According to billionaires, it is currently more beneficial for them to hold back the development and investments of businesses, which finance wartime efforts and should be receiving support from the state.
