Russia funds war in Ukraine through secret plan that could jeopardize its economy
Russia is financing its war in Ukraine through a covert strategy that poses significant risks to the country’s already strained economy, which is grappling with high inflation and steep interest rates.
Craig Kennedy, a former Morgan Stanley investment banker, explained that Moscow is pressuring banks to provide preferential loans to military-related companies, enabling the continuation of the war effort.
This tactic creates a misleading picture of the economy, obscuring its true state while revealing record-high military spending.
Despite sanctions imposed since the war began in February 2022, Russia is projecting economic growth of 2.5% by 2025.
Craig Kennedy said according to the Financial Times: "Putin has commandeered the Russian banking system, with banks required to lend to companies designated by the government at chosen, preferential terms."
He added that Putin "sits on a ticking financial time bomb of his own making."
(QG - Source: Newsweek / Financial Times / Picture: © Unsplash)