Zelensky-Trump rapprochement has alarmed the Russian elite

The Washington Post reports that the agreement reached after two months of negotiations between the United States and Ukraine on the development of natural resources is causing serious concern in Russia. According to an analytical article published by the publication on May 2, the Russian elite views the agreement as a geopolitical defeat for the Kremlin.

Zelensky-Trump relationship is causing concern

According to the article, Russian political leaders are concerned about the possibility of a rapprochement between Volodymyr Zelensky and former US President Donald Trump. The Kremlin believes that this process could lead to the abandonment of beneficial diplomatic agreements on Ukraine.

One of the senior Russian officials, who spoke on condition of anonymity, told WP journalists:

“Putin must at least show that he is ready to make concessions on certain issues, otherwise a new wave of sanctions will come. This time, the sanctions could be very severe.”

Sanctions and the threat of budget deficit

At the same time, it was reported that a new package of sanctions against Russia is being prepared under the leadership of US Senator Lindsey Graham. If these restrictions come into force, the Russian economy may come under even greater pressure. Because the budget deficit in the country continues to grow.

“Russian officials claim that they have overcome the sanctions, but in reality they are also worried that economic problems are growing. The economy cannot be managed in the long term through a mobilization model,” said a WP source.

Economic indicators are declining

In the first quarter of this year, Russia's gross domestic product (GDP) growth rate clearly slowed down. If in 2023 GDP growth amounted to 4.1 percent, in the first quarter of 2024 this figure was only 1.7 percent.

Meanwhile, despite the high interest rates of the Russian Central Bank, inflation remains above 10%.

Sectors other than military spending have been in decline, and the fall in oil prices has reduced budget revenues from raw materials by about 20%. According to the Ministry of Finance, the state budget deficit in 2024 is expected to reach its highest level since the pandemic - up to 3.8 trillion rubles, instead of the planned 1.2 trillion.

As Russia faces new pressures on foreign policy, what measures can it take to maintain economic stability at home? How might new sanctions and geopolitical agreements change this balance? What do you think? Read 'Zamin' on Telegram!