In the recent interview by YLE.fi, Torbjörn Becker, Director of the Stockholm Institute of Transition Economics, discussed widespread misconceptions about Russia’s economy amid the ongoing war in Ukraine. Becker emphasized that Russia’s mounting fiscal pressures are frequently overlooked in public debate, even as the country attempts to project stability.
“The priorities that have to be made in the state budget are becoming more and more complicated and difficult. We now see that there is not much left of the liquid assets in the national welfare fund. We also see that GDP growth is basically close to zero,” said Torbjörn Becker. His insight points to a government grappling with depleted reserves and questionable official indicators.
The interview also explored how new U.S. sanctions, drone attacks on refineries, and Russia’s limited borrowing options are reshaping the country’s economic outlook. Moreover, with high interest rates, shrinking fiscal buffers, and rising production constraints, the war economy faces mounting structural strain. Even so, the article stresses that collapse is not imminent. Instead, the economy is adapting under growing pressure. Tax hikes and spending cuts will likely affect ordinary Russians.
To read the full discussion featuring Torbjörn Becker and explore the broader analysis of Russia’s economic trajectory, visit the original article on YLE.fi. Additionally, for more expert analysis from SITE, visit SITE’s homepage.
Further Reading
Cutting Russia’s income demands a coordinated strategy that targets energy exports, key materials, and critical technologies. Furthermore, broader trade, financial, and military sanctions continue to weaken its war efforts and global influence.
For deeper insights on how sanctions affect the Russian economy, visit the Sanctions Portal Evidence Base. You can also learn more about Western sanction packages and Russian countermeasures in the Timeline of Western Sanctions and Russian Countermeasures.
