**Putin Downplays Economic Concerns, Says Reports of Collapse “Greatly Exaggerated”**
Russian President Vladimir Putin has brushed off growing concerns about the country’s economy, despite warnings from his own officials that stagnation and recession are looming. Speaking at the St. Petersburg International Economic Forum on June 20, Putin claimed that Russia’s economy is strong and has outpaced global growth over the past two years.
“We’ve had a fairly high pace of growth for two years because free resources were activated,” Putin said, echoing comments made earlier in the day by Central Bank Governor Elvira Nabiullina. However, both officials acknowledged that the economy is facing significant challenges, including sustained international sanctions and falling oil prices.
**Economic Concerns Mount**
Despite Putin’s optimism, analysts are sounding alarm bells about Russia’s economic prospects. The ongoing war with Ukraine has put a huge strain on the Russian economy, with mounting losses and wartime spending weighing heavily on the country’s finances.
“It’s not just the sanctions that are the problem,” said energy security analyst Wojciech Jakobik in an op-ed for the Kyiv Independent. “The implications for Russia are grave.”
Russia’s daily bill for sign-up bonuses to encourage people to fight is estimated to be around $24 million, with the country having suffered over 1 million casualties since the start of the war.
**Ukraine Prepares for Recession**
Meanwhile, Ukraine is bracing itself for a potential recession, with Economy Minister Maxim Reshetnikov warning that the country is “on the verge of a transition to recession.” Ukrainian President Volodymyr Zelensky has called on Western partners to lower the price cap on Russian oil from $60 to $30 per barrel.
**Sanctions and Escalation**
The conflict between Iran and Israel could make it impossible to impose new restrictions on Russia, according to two diplomats who spoke to Politico. The escalation of the conflict in Ukraine has also seen a significant increase in drone attacks by Russia against Ukrainian cities, with record numbers of unmanned aerial vehicles (UAVs) being launched per night.
**Human Cost of War**
The human cost of the war is becoming increasingly clear, with reports emerging of Russian soldiers being subjected to harsh treatment and abuse. A recording has been leaked of a commander of a reconnaissance unit from Russia’s 68th Motorized Rifle Division boasting about eating his comrade for two weeks after he was killed.
**Ukraine Seeks Peace**
Despite the ongoing conflict, Ukraine is seeking a peaceful resolution, with President Zelensky set to attend a NATO summit in The Hague next week. However, Russia’s envoy to the United Nations (UN), Vasily Nebenzya, has said that Moscow’s peace proposal is the “best offer” Ukraine can get today.
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