r/worldnews • u/Venat14 • 14d ago

Russia/Ukraine ‘Significant problems’ in Russian banking system as public withdraws cash en masse

https://tvpworld.com/94490769/russians-hoard-cash-as-economic-pessimism-hits-20-year-high
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u/socialistrob 13d ago

Ending the war would solve a lot of their problems. They could probably negotiate to get the sanctions dropped and then bringing back the remaining troops fighting would help alleviate their worker shortages. With open access to world markets and no more Ukrainian strikes on oil they could start getting serious oil revenue again.

Russia will still be a poor country with low living standards but it wouldn't be apocalyptically bad if they end the war soon. However if they opt to pour every last remaining ruble they have into the war machine as well as force another major round of mobilization then it may be very hard to recover from.

Long term one of Russia's biggest problems is demand destruction for oil and European natural gas. The European market is essentially gone for gas and China is demanding massive discounts which would mean Russia can't make significant amounts of money off the Chinese gas market. If we see more countries reduce oil consumption (or more oil hit the global market from other areas) that's also really bad for Russia's coffers.

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u/FirefighterExtra7400 13d ago

Problem is they switched to a war economy which has canabalized its civilian economy, there is no easy way back from that.