Ukraine’s GenStaff says its deep strikes have erased 4% of Russia’s GDP this year, and that figure certainly grabs your attention. Four percent might not seem like a colossal figure at first glance, but when you’re talking about the entire economic output of a country, it represents a significant dent, a real punch to the gut. It’s a substantial sum of money, and you have to wonder, just how much damage needs to be inflicted before it becomes truly unsustainable for Russia to keep up the fight?
This brings up the million-dollar question: What percentage point of economic damage would it take to make the war unfeasible for Russia to continue?… Continue reading
Putin still has no intention of stopping the Ukraine war, and frankly, that’s hardly surprising. It’s become painfully obvious to everyone, except perhaps a few people who seem to live in an alternate reality. From a purely strategic viewpoint, the whole thing seems incredibly counterproductive. It’s hurting his own demographics, depleting his military’s resources, and providing the West with invaluable insights into how the Russian military actually functions. It’s even prompted large countries to rearm, increasing the very threat he supposedly wants to eliminate.
It’s hard to understand the logic behind this, beyond the obvious. It feels like a terrible waste of life, a pointless bloodshed.… Continue reading
The Russian government has initiated a campaign to nationalize the assets of Konstantin Strukov, a billionaire and owner of Russia’s largest gold mining company, marking an escalation in the Kremlin’s efforts to seize wealth from its elite. Strukov, despite his history of loyalty and political ties, had his private jet grounded and passport seized, with the FSB involved in preventing his departure from the country. This action is part of a broader pattern of reclaiming private wealth to support the war economy, particularly in sectors like gold and oil, amidst shrinking revenues and growing budget deficits. This case, along with others, indicates a shift in the Putin-era social contract, where loyalty no longer guarantees protection from asset seizure as the Kremlin seeks new funding sources.
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Despite some Western companies considering a return to Russia post-war, the Russian government is prioritizing domestic businesses and isn’t eagerly awaiting their return. Officials have stated that there will be consequences for past decisions, emphasizing a focus on domestic and Eurasian Economic Union companies. While some Western firms may be tempted by potential opportunities, concerns about staff safety, rule of law, and reputational damage remain significant deterrents. The current Russian economic climate, marked by high inflation and a challenging energy market, further complicates the appeal of re-entering the market.
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Matt Underwood 
John Q. Hosedrinker