Putin faces mutiny from Russian businesses as ruble tanks amid war with Ukraine

Vladimir Putin is facing increasing backlash from Russian businesses as sanctions take a toll on companies amidst Russia's conflict with Ukraine. The UK's Ministry of Defence has reported: "Criticism of high interest rates is growing amongst Russian business."

The report further stated: "However inflationary pressures are also likely intensifying, in part due to the recent depreciation of the ruble."

This comes after the Russian Central Bank (CBR) decided to maintain interest rates at 21% on December 20.

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British officials note this as a departure from its recent strategy to combat inflation, as during its last meeting in October 2024, the CBR raised interest rates from 19% to 21%. This was the highest rate since the war in Ukraine began in 2022.

The MoD added: "In November 2024, the ruble depreciated to its lowest rate against the US dollar since the invasion of Ukraine in 2022 (114 per US dollar).", reports the Express.

"The drop in the ruble's value was almost certainly driven by the announcement of sanctions on Gazprombank, followed by the publication of economic statistics indicating continued overheating of the Russian economy."

"In response, the CBR announced it would cease the purchase of foreign currencies until 2025."

Despite the ruble staying stronger than 100 to the US dollar up until December 20, market watchers were betting on a rate hike. But, experts say that the Central Bank of Russia's (CBR) choice to freeze interest rates could further rock the country's economy due to inflation from the weakened currency, labor shortages, and big state spending.

In another setback for Putin, it's been reported that Russia took heavy losses - nearly 1,400 troops - on New Year's Day 2025. Ukrainian military sources marked a grim tally of 1,370 Russian casualties for January 1, including those killed and wounded.

This was shared online, with a quote from famed author Arthur C Clarke that read: "The limits of the possible can only be defined by going beyond them into the impossible."