Russian dictator Vladimir Putin's team is failing to combat long-term demographic decline in the Russian Federation amid sanctions and the war against Ukraine.
Points of attention
- The economic crisis has exacerbated the demographic decline in Russia.
- The Kremlin's initiative to expand maternity capital payments cannot compensate for the overall economic instability.
Problems in Russia are getting worse and worse
American analysts have concluded that the regional authorities of the aggressor country will most likely continue to expand maternity capital payments within the framework of the Kremlin's directive to address demographic problems.
However, one cannot ignore the fact that the Russian economy is currently suffering significantly due to war, sanctions, and a growing labor shortage.
Against this backdrop, it may be difficult for the government to provide large maternity capital payments over time.
As a reminder, the American Institute for the Study of War recently predicted that Russia will face serious problems in the near future. The thing is that the enemy's economy has not turned out to be as stable as the Kremlin claims.
What is happening at the Central Bank of the Russian Federation?
Journalists recently disseminated information about a letter from the Central Bank of Russia in response to a request from Russian State Duma deputy Denis Parfyonov.
It said that lowering the key interest rate to stimulate demand when "demand already exceeds supply" is "dangerous."
According to the Russian Central Bank, current shortages of labor, equipment, and transportation mean that cheap loans will only intensify competition for resources among businesses and increase prices.
What is important to understand is that 2 months ago, the aggressor country already raised the key interest rate to 21%, and the head of the bank, Elvira Nabiullina, recently announced that the bank may raise it even more.
Against the backdrop of recent events, the illegitimate President of the Russian Federation, Vladimir Putin, complained about the Central Bank and Nabiullina and accused them of mishandling the increase in interest rates.
