Hard-up Russia 'can't afford for the war to end'

RUSSIA has become so reliant on its war economy that premier Vladimir Putin is unlikely to accept a full-scale peace deal in Ukraine, experts warned last night.

- Marco Giannangeli

It follows the announcement last week of a record £100bn defence budget for next year worth around 40 per cent of Russia's total economy, and an increase of more than £40bn since 2023.

"Russia simply cannot afford for the war to end," said economist Dr Renaud Foucart, of Lancaster University, last night.

Regional expert Prof Mark Galeotti added: "We should expect any deal brokered by Presidents Trump and Zelensky with Putin to amount to little more than a ceasefire.

"Putin will use this time to continue to crank up his war machine because he needs to build up his devastated armed forces," he added.

The Russian leader has cited his transition to a wartime economy as a sanctionbusting success story, with arms factories across the country working non-stop to support Russia's war machine in Ukraine.

But in reality, its economy is fragile, too reliant on energy exports and in dire risk of overheating.

Russia's currency, the rouble, continued its plummet last week, dropping to its lowest level against the US dollar since the start of the war in Ukraine.

Its central bank hit back by ordering all exporters to convert 80 per cent of their foreign currency to roubles and limiting foreign currency withdrawals to just £7,900 for individuals.