Blow For Putin As UK Reveals True Extent Of Economic Damage Caused By

Vladimir Putin appears before the media after the summit of the Collective Security Treaty Organization in Astana, Kazakhstan. via Associated Press

The Ukraine war is continuing to have a devastating effect on the “overheating” Russian economy, according to UK intelligence.

In a blow for Vladimir Putin, the Ministry of Defence said the Russian Central Bank (CBR) is still struggling to tackle high inflation.

Interest rates are at 21% – compared to 4.75% in Britain – while labour shortages and high government spending are also contributing to the economic gloom.

Officials were even forced to depreciate the Russian ruble in a desperate bid to get the economy back on an even keel, the MoD said.

In their latest update on the war, they said: “Criticism of high interest rates is growing amongst Russian businesses; however inflationary pressures are also likely intensifying.

“The drop in the ruble’s value was almost certainly driven by the announcement of sanctions on Gazprombank, followed by the publication of statistics indicating continued overheating of the Russian economy.”

The MoD added: “The CBR’s decision to hold interest rates at the current level will likely add to the imbalances in the economy due to the inflationary effects of the depreciation, labour shortages and high government spending.”

As the Russian economy struggles, the UK announced last week that it was increasing its financial support for Ukraine as the third anniversary of the war approaches.

Kyiv will receive £4.5m to help finance Ukraine’s documentation, investigations and prosecutions of war crimes, defence secretary John Healey said.

The new funding comes on top of the £225m of military support announced last month to boost Ukraine’s military capabilities, and the pledge to send £3bn of British military aid per year, every year.

There’s also the the £2.26bn loan given to Ukraine to help it fight the Russians which will be paid back from frozen Russian assets.

Related…

EMEA Tribune is not involved in this news article, it is taken from our partners and or from the News Agencies. Copyright and Credit go to the News Agencies, email news@emeatribune.com Follow our WhatsApp verified Channel