The head of the Central Bank of the Russian Federation, Elvira Nabiullina, publicly confirmed that the resources that allowed the Russian economy to show growth for two years in the face of a full-scale war against Ukraine and sanctions have finally been exhausted.
Points of attention
- The head of the Central Bank of Russia, Elvira Nabiullina, emphasized the exhaustion of resources including workforce, production capacity, and capital reserves, signaling a serious problem for the country's economy.
- Warnings have been issued regarding the need to address the dwindling resources and challenges faced by the Russian economy to avoid further repercussions.
Russia is facing a new serious problem
The head of the Central Bank of the Russian Federation warned about it at the St. Petersburg International Economic Forum.
As Elvira Nabiullina noted, the aggressor country was able to grow at a fairly high rate for two years because free resources were used.
She also emphasized that this concerns the workforce, production capacity, capital reserves of the banking system, as well as money from the National Welfare Fund (NWF), with which the Russian government patched "holes" in the budget and paid for trillion-dollar megaprojects.
"We need to understand that many of these resources are really exhausted," Putin's ally declared.
She also does not hide the fact that mass emigration and the recruitment of men for war have created a shortage of personnel, which the Russian government estimates at 2 million people.
In addition, it is indicated that the liquid assets of the National Defense Fund have decreased threefold since the beginning of the full-scale war against Ukraine in 2022, to 2.8 trillion rubles.
Elvira Nabiullina officially confirmed that Russian business profits fell by 33% in March, and in the key oil and gas sector, they doubled.
