Study: Putin's war economy nearing collapse — fund exhausted, deficit record high
A new European joint study indicates that Russia's war economy has entered its final stage: the national wealth fund is depleted, the budget deficit for all of 2026 has been exceeded in the first quarter, and hidden state debt has reached 50% of GDP.
According to a new European joint study, Russian President Vladimir Putin's war economy has entered its final phase of collapse. The study reveals that the country's national wealth fund has been completely exhausted, while the budget deficit planned for the entire year 2026 has already been exceeded in the first quarter.
Furthermore, hidden state debt accumulated through the banking system has reached a alarming 50 percent of gross domestic product (GDP). Economist Moritz Schularick, commenting on the findings, stated that the Kremlin's system resembles a financial bubble ready to burst, and that the impression of unlimited Russian resources is deceptive.
The study and Schularick's analysis were discussed on the Berlin Playbook podcast, published daily by POLITICO.
