Stubborn inflation, exorbitant borrowing costs, bankruptcy risks and a growth slowdown: the Russian economy is facing a slew of negative headlines, as the costs of the Ukraine war and Western sanctions mount.
Since ordering an invasion in February 2022, Russian President Vladimir Putin has repeatedly touted the “failure” of sanctions and hailed strong growth in the face of unprecedented uncertainty.
But going into 2025, that three-year run of mostly good economic news looks in serious doubt.
The latest setback for the Kremlin came last week, when inflation accelerated to 8.9 percent in November, according to official statistics.
Prices have been rising despite the central bank having hiked interest rates to a two-decade high of 21 percent.
Russian media, usually reluctant to report on any sign of social discontent, are turning increasing attention to hard-pressed families.
The price of butter, up a third since the start of the year, has become …