So Sad! Soon Vlad will not be able to fund his war. Russian Oil Production Collapses to 20-Year Low https://www.newsweek.com/russia-oil-20-low-production-2007388
Russia lacks the parts and maintenance to keep Airbus and Boeing planes in the air -- yet they keep flying them with the expected results.
Russia is not paying its defense factory vendors. This does not bode well for the Kremlin. Note that in this case the court had already ruled the Russian Defense Ministry owes the company hundreds of millions in rubles which the Kremlin still has not paid.
Yep... this suit is for 100 million rubles. The Kremlin still owes 146 million rubles from the previous lawsuit. Pretty soon it's gonna run into some real money... or the defense plant will not be able to pay it's employees with no cash coming in. I will note that this is just one of the defense contractors inside Russia complaining about missing and/or delayed payments.
Things are looking bleaker for Moscow's tanker ghost fleet as more sanctions are put in place. Russia’s $10 billion ghost fleet effort to dodge sanctions https://english.nv.ua/business/us-plans-sweeping-sanctions-on-russian-ghost-fleet-50480317.html Moscow has developed a strategy to evade Western sanctions by utilizing a shadow fleet that consists of hundreds of tankers that constantly change flags, pump oil on the high seas, and disable identification systems to avoid detection. They allow Russia to continue exporting oil, which is essential to funding its war effort in Ukraine. According to a recent Reuters report, President Joe Biden's administration plans to impose an additional “substantial package” of sanctions on Russia's shadow oil tanker fleet days before Donald Trump takes the office. They are expected to target “two Russian oil companies, more than 100 tankers, oil traders, Russian insurance companies etc.," focusing on tankers that carry Russian oil sold above the West's $60 per barrel price cap. The Group of Seven (G7) countries are also exploring ways to further tighten price restrictions on Russian oil. This includes considering alternatives to the current price ceiling mechanism such as a complete ban on the processing of Russian oil or lowering the price threshold from $60 to $40 per barrel. These measures are being discussed amid predictions of a global oil surplus in 2025. Current restrictions on Russian oil include a $60 per barrel limit imposed by the G7, the European Union (EU), and Australia at the end of 2022. The mechanism works by prohibiting the use of Western maritime services for the transportation, insurance, and financing of oil priced at or above the limit. This puts buyers of Russian oil at risk of losing access to Western services if they pay more than $60 per barrel. The G7 countries and the EU have also imposed an embargo on Russian oil, except for pipeline supplies. As a result of these sanctions, Russia has lost the European market for seaborne oil exports. However, it has shifted its focus to India and China, which have not joined the sanctions, as well as Turkey. According to Kyiv School of Economics’ (KSE) “Russian Oil Tracker” report released last November, these countries have become the main buyers of Russian oil. The "shadow fleet" plays a critical role in facilitating these oil exports beyond the price ceiling. In October 2024, the fleet accounted for 85% of Russia's oil supplies, with India alone importing 53% of Russia's oil exports by sea. Deliveries to Turkey also increased 2.5 times to 329,000 barrels per day after the resumption of operations at the SOCAR STAR refinery. Despite the current restrictions and sanctions, Russia's oil revenues for 2023 amounted to $183 billion. It is projected that even with current price restrictions and sanctions, these revenues could reach $193 billion in 2024 and $137 billion in 2025. The KSE estimates that Russia has invested $10 billion in the development of its shadow fleet and also takes advantage of offers from “friendly” countries. According to Ukraine Main Intelligence Directorate (HUR), the shadow fleet currently includes more than a thousand mostly outdated vessels that are poorly maintained, without proper insurance, with confusing ownership and management structures, located in “friendly” jurisdictions, under “convenient” flags. The total deadweight (gross tonnage - Ed.) of this segment is estimated at more than 100 million tons (approximately 17% of the world's oil tanker fleet).
Russians prepare for the rolling out of food rationing and the freezing of their bank accounts. What a great economy Putin has created. Vladimir Putin 'considering' drastic actions as Russian economy is in 'turmoil' Vladimir Putin is mulling over a series of drastic options to prevent a further economic downturn, including freezing Russian bank accounts and rolling out food rationing https://www.irishstar.com/news/us-news/vladimir-putin-russia-ukraine-war-34476073 Reports are swirling that Vladimir Putin is mulling over drastic actions in the face of looming economic turmoil - which has seen a key group of Russians considering 'mutiny' - including freezing Russian bank accounts and rolling out food rationing. Citizens are already feeling the pinch with skyrocketing interest rates and a spike in food prices, sending the cost of staples through the roof, with Putin making desperate moves to help the economy. From November 2023 to 2024, potato prices soared by nearly 95 percent, while butter costs jumped by 36.5 percent. This sharp increase in food prices has led to a spate of thefts targeting supermarkets and grocery stores, with butter emerging as a hot commodity, with Putin lashing out at citizens' 'eating habits.' Meanwhile, interest rates have hit a record high of 21 percent, piling pressure on businesses struggling with loans that were once manageable. With the economic outlook looking grim, the Kremlin is considering tough measures to prevent further decline. Among the potential strategies is stopping bank deposit withdrawals and issuing food cards, as per insights from the Telegram Channel General SVR. "Many members of the Politburo agree that the freeze is necessary, but they are in no hurry to introduce this measure and are trying to postpone the adoption of the final decision as much as possible," the channel revealed. It also noted" "On the other hand, they cannot miss the critical moment when this measure ceases to be effective, and the crisis goes according to the worst scenario, the end of which will be the 'collapse of the financial system' of the country," reports the Express US. "We have already reported that the Russian leadership is going to block bank deposits, exchange deposits for bank shares, and prohibit the sale of these shares for a year. Food cards are on the way and a decision on this issue will be made on the weekend." p:nth-of-type(6)","type":"performPlaceholder","relativePos":"after"}" data-placeholder-placeholder="" data-response-start="1342" data-type="placeholder"> General SVR, which surfaced in 2020 claiming ties with former and current members of the Russian Foreign Intelligence Service and other state agencies, has been a source of insider information. A spokesperson for General SVR, in a conversation with Business Insider, refused to reveal the identities behind the channel's intel due to safety concerns but expressed "complete confidence" in their sources. A recent analysis by an ex-Morgan Stanley investment banker has cast a spotlight on the potential for a corporate and banking crisis in Russia, exacerbated by its ongoing military expenditures. President Putin has sanctioned an unprecedented defense budget, earmarking 32.5 percent of the total government spending for 2025 at US$126 billion. Craig Kennedy, analyzing the situation, pointed out that Russia has adopted a dual approach to finance its conflict: through its defence budget and an off-budget scheme, backed by a law passed on February 25, 2022, that mandates Russian banks to extend favorable loans to entities involved in military activities. Russia's corporate debt has skyrocketed by 71 percent, hitting US$415 billion, which is a staggering 19.4 percent of its GDP, outstripping both oil and gas revenues and defense spending, according to Kennedy in his Navigating Russia newsletter. This means that Russia's actual war costs "far exceed" what the official budget suggests. The second half of 2024 saw these off-budget defence funds become harder to maintain, leading to soaring inflation and interest rates for borrowers in the "real" economy climbing above 21 percent, setting the stage for a potential systemic credit crisis, Kennedy points out. Echoing Kennedy's analysis, the Financial Times has highlighted that Putin now faces a dire financial predicament of his own making, underscoring the need for Kyiv's allies to cut off Moscow's access to external financing.