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*** Official Russia vs. Ukraine Discussion - Invasion has begun *** (3 Viewers)

Russian Offensive Campaign Assessment, April 27, 2025

Ukrainian and Russian forces' constant technological and tactical battlefield innovations continue to transform the character of warfare in Ukraine. A non-commissioned officer (NCO) in a Ukrainian unmanned systems battalion, likely operating in the Chasiv Yar direction, reported on April 27 that continuous technological innovations and battlefield adaptations have increasingly transformed the character of modern conventional warfare in Ukraine into a war that primarily features "long-range, remote combat" over meeting engagements between infantry and armored vehicles. The NCO noted that Ukrainian and Russian forces’ intensifying drone usage has expanded the area of contested gray zones and kill zones at the forward edge of the battle area. The NCO noted that in 2024, contested gray zones were roughly 500 meters to two kilometers in depth, but more intense drone usage since then has expanded the gray zone up to five to seven kilometers in some areas of the frontline. The NCO reported that Russian forces are improving and expanding their unmanned systems capabilities and emulating Ukrainian forces’ tactics of using drones to intercept enemy drones and conduct remote mining. Ukrainian forces have successfully leveraged superior drone capabilities to defend critical sectors of the frontline while also mitigating manpower and materiel constraints.

Russian forces are attempting to offset Ukrainian technological adaptations and drone operations by integrating motorcycles and civilian vehicles into offensive operations along the entire frontline. The NCO in the Ukrainian unmanned systems battalion stated that Russian forces are increasingly using infantry assaults and motorized assaults on motorcycles, all-terrain vehicles (ATVs), and light vehicles to advance in areas where Ukrainian forces leverage drone usage to maintain frontline positions. The non-commissioned officer reported that Russian forces leverage motorcycles and other light vehicles to disperse forces to more easily avoid drone strikes. A Ukrainian soldier operating in the Pokrovsk direction stated on April 27 that Russian forces have conducted 13 motorized assaults on motorcycles since March 20. A Ukrainian servicemember operating in the Pokrovsk direction stated on April 27 that Russian forces in the Pokrovsk direction cannot drive heavy armored vehicles to frontline positions due to disrupted Russian ground lines of communication (GLOCs), resulting in Russian forces shifting tactics to prioritize daily infantry assaults supported by motorcycles.

ISW has observed Russian forces throughout the entire theater struggling to operate heavy armored vehicles close to the line of fire without being struck by Ukrainian drones. Russian forces are likely leveraging the speed, maneuverability, and small profiles of motorcycles and other light civilian vehicles to mitigate the efficacy of Ukrainian drone capabilities and are likely developing a tactical doctrine for systematic offensive motorcycle usage and preparing to integrate motorcycle usage into Summer and Fall 2024 offensive operations. The Russian Ministry of Defense (MoD) and military command previously responded to Ukrainian drone innovations by attempting to formally integrate and centralize Russia’s drone operations and production. The Ukrainian and Russian defense industrial bases (DIBs) continue to compete in the innovation of new, cost-effective systems that enhance assault and battlefield capabilities and counter each other’s innovations. Russian forces likely see a tactical opportunity in leveraging motorcycles and civilian vehicles to advance and seize as much Ukrainian territory as possible despite Ukraine’s drone defenses.

Vladimir Putin’s money machine is sputtering

FROM KALININGRAD to Vladivostok, something has changed. A high-frequency index produced by Goldman Sachs, a bank, suggests that, since the end of last year, Russia’s annualised economic growth has fallen from around 5% to around zero (see chart). VEB, the Russian development bank, finds similar trends in its estimate of monthly growth. A high-frequency measure of business turnover compiled by Sberbank, Russia’s largest lender, has dipped. Although more circumspect, the government acknowledges that something is up. In early April the central bank noted that recently “a number of sectors recorded lower output because of plummeting…demand”.

Were that the whole story, perhaps Mr Putin would remain content. For Russia’s government, a small, gradual deceleration may be a price worth paying if that means taming inflation. The problem is that the slowdown is neither gradual nor small. This is because, in recent weeks, a third factor has come to dominate all others—external conditions have soured. As America’s trade war has escalated, global growth forecasts have plunged, and oil prices have followed. Economists are particularly concerned about China, the largest buyer of Russian oil. The IMF has cut its expectations of Chinese GDP growth in 2025 from 4.6% to 4%.
Falling oil prices are causing Russia all sorts of trouble. They have hit the stockmarket, where oil companies account for a quarter of capitalisation. The MOEX index, which tracks the share price of the top 50-odd listed firms, is down by a tenth from its recent peak. As export receipts decline, sliding oil prices directly affect the real economy, too. Already the government’s coffers are feeling the pinch: in March oil-and-gas tax revenue fell by 17% year on year. And on April 22nd Reuters reported, citing official documents, that the government is expecting a sharp slowdown in oil-and-gas sales this year.
 
Shocked by US peace proposal, Ukrainians say they will not accept any formal surrender of Crimea

A peace proposal by the Trump administration that includes recognizing Russian authority over Crimea shocked Ukrainian officials, who say they will not accept any formal surrender of the peninsula, even though they expect to concede the territory to the Kremlin, at least temporarily. Giving up the land that was illegally annexed by Russia in 2014 is also politically and legally impossible, according to experts. It would require a change to the Ukrainian constitution and a nationwide vote, and it could be considered treason. Lawmakers and the public are firmly opposed to the idea. “It doesn’t mean anything,” said Oleksandr Merezkho, a lawmaker with Ukrainian President Volodymyr Zelenskyy’s party. “We will never recognize Crimea as part of Russia.” Unlike a territorial concession, a formal surrender would permanently relinquish Crimea and abandon the hope that Ukraine could regain it in the future.
Then this will only end when Russia has chewed Ukraine up from east to west and destroyed whatever is left of the country and populace.
 
Shocked by US peace proposal, Ukrainians say they will not accept any formal surrender of Crimea

A peace proposal by the Trump administration that includes recognizing Russian authority over Crimea shocked Ukrainian officials, who say they will not accept any formal surrender of the peninsula, even though they expect to concede the territory to the Kremlin, at least temporarily. Giving up the land that was illegally annexed by Russia in 2014 is also politically and legally impossible, according to experts. It would require a change to the Ukrainian constitution and a nationwide vote, and it could be considered treason. Lawmakers and the public are firmly opposed to the idea. “It doesn’t mean anything,” said Oleksandr Merezkho, a lawmaker with Ukrainian President Volodymyr Zelenskyy’s party. “We will never recognize Crimea as part of Russia.” Unlike a territorial concession, a formal surrender would permanently relinquish Crimea and abandon the hope that Ukraine could regain it in the future.
Then this will only end when Russia has chewed Ukraine up from east to west and destroyed whatever is left of the country and populace.
Or the Russian economy collapses. The key is their energy exports.
 
Shocked by US peace proposal, Ukrainians say they will not accept any formal surrender of Crimea

A peace proposal by the Trump administration that includes recognizing Russian authority over Crimea shocked Ukrainian officials, who say they will not accept any formal surrender of the peninsula, even though they expect to concede the territory to the Kremlin, at least temporarily. Giving up the land that was illegally annexed by Russia in 2014 is also politically and legally impossible, according to experts. It would require a change to the Ukrainian constitution and a nationwide vote, and it could be considered treason. Lawmakers and the public are firmly opposed to the idea. “It doesn’t mean anything,” said Oleksandr Merezkho, a lawmaker with Ukrainian President Volodymyr Zelenskyy’s party. “We will never recognize Crimea as part of Russia.” Unlike a territorial concession, a formal surrender would permanently relinquish Crimea and abandon the hope that Ukraine could regain it in the future.
Then this will only end when Russia has chewed Ukraine up from east to west and destroyed whatever is left of the country and populace.
Or the Russian economy collapses. The key is their energy exports.
Fair but they seem to be getting around that or else their economy would have collapsed by now, no?
 
Shocked by US peace proposal, Ukrainians say they will not accept any formal surrender of Crimea

A peace proposal by the Trump administration that includes recognizing Russian authority over Crimea shocked Ukrainian officials, who say they will not accept any formal surrender of the peninsula, even though they expect to concede the territory to the Kremlin, at least temporarily. Giving up the land that was illegally annexed by Russia in 2014 is also politically and legally impossible, according to experts. It would require a change to the Ukrainian constitution and a nationwide vote, and it could be considered treason. Lawmakers and the public are firmly opposed to the idea. “It doesn’t mean anything,” said Oleksandr Merezkho, a lawmaker with Ukrainian President Volodymyr Zelenskyy’s party. “We will never recognize Crimea as part of Russia.” Unlike a territorial concession, a formal surrender would permanently relinquish Crimea and abandon the hope that Ukraine could regain it in the future.
Then this will only end when Russia has chewed Ukraine up from east to west and destroyed whatever is left of the country and populace.
Or the Russian economy collapses. The key is their energy exports.
Fair but they seem to be getting around that or else their economy would have collapsed by now, no?
They have done a lot to push off the economic issues... there will be a reckoning at some point, in some way.

The biggest issue is that Europe has bought more energy from Russia than they have spent to support Ukraine. The one thing that Russia is able to stay afloat economically right now is their energy exports. The US needs to do a full court press to kill it... if they do, Russia economy is done and the war is over. Potentially Putin is over.
 
Shocked by US peace proposal, Ukrainians say they will not accept any formal surrender of Crimea

A peace proposal by the Trump administration that includes recognizing Russian authority over Crimea shocked Ukrainian officials, who say they will not accept any formal surrender of the peninsula, even though they expect to concede the territory to the Kremlin, at least temporarily. Giving up the land that was illegally annexed by Russia in 2014 is also politically and legally impossible, according to experts. It would require a change to the Ukrainian constitution and a nationwide vote, and it could be considered treason. Lawmakers and the public are firmly opposed to the idea. “It doesn’t mean anything,” said Oleksandr Merezkho, a lawmaker with Ukrainian President Volodymyr Zelenskyy’s party. “We will never recognize Crimea as part of Russia.” Unlike a territorial concession, a formal surrender would permanently relinquish Crimea and abandon the hope that Ukraine could regain it in the future.
Then this will only end when Russia has chewed Ukraine up from east to west and destroyed whatever is left of the country and populace.
Or the Russian economy collapses. The key is their energy exports.
Fair but they seem to be getting around that or else their economy would have collapsed by now, no?
They have done a lot to push off the economic issues... there will be a reckoning at some point, in some way.

The biggest issue is that Europe has bought more energy from Russia than they have spent to support Ukraine. The one thing that Russia is able to stay afloat economically right now is their energy exports. The US needs to do a full court press to kill it... if they do, Russia economy is done and the war is over. Potentially Putin is over.
This is one of the many problems I have with the whole thing. You bluster do more, do more but then slide in the back and keep funneling cash to the very country you are blustering about. I'm not saying it's an easy fix but you can figure it out if you were serious. And I agree, the US needs to drive this if ever want it to come to end. Pressuring both sides, Europe/Ukraine and Russia.
 
Shocked by US peace proposal, Ukrainians say they will not accept any formal surrender of Crimea

A peace proposal by the Trump administration that includes recognizing Russian authority over Crimea shocked Ukrainian officials, who say they will not accept any formal surrender of the peninsula, even though they expect to concede the territory to the Kremlin, at least temporarily. Giving up the land that was illegally annexed by Russia in 2014 is also politically and legally impossible, according to experts. It would require a change to the Ukrainian constitution and a nationwide vote, and it could be considered treason. Lawmakers and the public are firmly opposed to the idea. “It doesn’t mean anything,” said Oleksandr Merezkho, a lawmaker with Ukrainian President Volodymyr Zelenskyy’s party. “We will never recognize Crimea as part of Russia.” Unlike a territorial concession, a formal surrender would permanently relinquish Crimea and abandon the hope that Ukraine could regain it in the future.
Then this will only end when Russia has chewed Ukraine up from east to west and destroyed whatever is left of the country and populace.
Or the Russian economy collapses. The key is their energy exports.
Fair but they seem to be getting around that or else their economy would have collapsed by now, no?
They have done a lot to push off the economic issues... there will be a reckoning at some point, in some way.

The biggest issue is that Europe has bought more energy from Russia than they have spent to support Ukraine. The one thing that Russia is able to stay afloat economically right now is their energy exports. The US needs to do a full court press to kill it... if they do, Russia economy is done and the war is over. Potentially Putin is over.
This is one of the many problems I have with the whole thing. You bluster do more, do more but then slide in the back and keep funneling cash to the very country you are blustering about. I'm not saying it's an easy fix but you can figure it out if you were serious. And I agree, the US needs to drive this if ever want it to come to end. Pressuring both sides, Europe/Ukraine and Russia.
It is funny when those of us paying attention can look back and remember someone warning Europe to get off Russian energy and they were mocked by both European leaders and opposition party for it. Now we see it play out.

My position that Russia must be stopped because it will send a clear and undeniable message to China who is our real adversary. Invading Taiwan Will not go well. The amount of money and American lives... not to mention lives in general saved will be tremendous. If we fail to stop Russia then we will be much closer to war with China eventually because the lesson learned is "if you are willing to take the pain you can outlast the Americans".
 
My position that Russia must be stopped because it will send a clear and undeniable message to China who is our real adversary.

Doesn't seem like Europe is willing to make the sacrifices to make that happen so that isn't happening.

Ukraine made a grave grave mistake by trying to join NATO and they will pay the price for generations.

Zelensky **** the bed. He took an unnecessary risk. He should have waited 20 years when Putin was out of the picture and made the move then. Instead he's destroyed his country, wasted trillions, thousands dead and will now potentially lose actual land.
 

Lavrov says Russia wants any peace deal to have "international recognition" of Crimea and the four other Ukrainian provinces it's annexed as an "imperative." That would mark a hardening of what was already a very hardline Russian position.


Ukraine lost an Su-27 fighter jet while repelling a Russian drone attack this morning, the Air Force reported, with the pilot safely ejecting, as reported by the Air Force of the Armed Forces of Ukraine.


Russia’s Aleksey Chadaev, one of the key volunteers responsible for fielding fiber-optic drones, claims that Ukraine is behind Russia in fielding such UAVs - “Ukraine’s strength in mass-scale garage-level production of radio-controlled drones is its weakness now since manufacturing fiber-optic UAVs requires industrial-level production and industrial quality control. As a result, Ukrainian fiber-optic cables tend to break more often because of how the cable is wound on a spool.”


According to Ukrainian journalist Yuriy Butusov, the Belgorod operation was planned as a surprise raid intended to inflict heavy losses and divert Russian forces from the Guevo-Gornal area in Kursk Oblast. He says Ukraine achieved those objectives and is now engaged in positional defensive fighting near Popovka and Demidovka, conducted by small infantry groups supported by drones, artillery, aviation, and HIMARS. Butusov says the loss ratio is heavily in Ukraine's favor, but he hints that it's time to wrap the operation up.

Butusov says the Ukrainian forces participating in the operation include the 225th and 33rd separate assault regiments, elements of the 414th UAS brigade, and a rifle battalion composed of Air Force personnel. (See thread above for combat footage from the first three units.)

According to Butusov, Russian forces in the area include the 34th and 128th motor rifle brigades, 83rd MRR, 204th "Akhmat" Regiment, a battalion from 155th Naval Infantry Brigade, a battalion from 88th 88th “Espanyola” Reconnaissance-Sabotage Brigade, and FSB units. (Also documented in the thread above.) He claims the naval infantry battalion and 128th Brigade have been withdrawn for replenishment.

Amid Uncertainty About U.S. Support, Ukraine Pins Its Hopes on Innovation

Still, the Ukrainians have defeated the odds before in their battle against a much larger enemy, in part because they changed battlefield strategy and rejiggered weapons on the fly. At least for now, soldiers are hopeful that the latest innovative program, called the Line of Drones, will help them keep the Russians mainly stalled on the front line.

“It’s not man against man anymore,” said the commander of the squad operating from the basement in eastern Ukraine.

The group flies first-person-view drones, which give the pilot the video equivalent of a front-row seat as bombs hurtle into Russian soldiers, cars, tanks or bunkers. In keeping with military protocol, the commander asked to be identified only by his first name and rank, Private Artem.
Even before the Line of Drones, Ukraine was relying heavily on unmanned weapons, which now inflict about 70 percent of all casualties in the war on both sides, the Ukrainian military says — more than all other weapons combined, including tanks, howitzers, mortars and land mines. While those other weapons are partly provided by the United States, the Ukrainians assemble the drones domestically from components mostly made in China.
The expanded drone program, in the works since last fall but formally announced in February, is Kyiv’s Plan B if talks to end the war, which began with Russia’s full-scale invasion in 2022, fail.

But the drone deployment has already yielded results, according to military analysts.
It has been partly credited for a three-month slowdown of the Russian offensive in Ukraine. Russian forces that surged forward last fall have been in a virtual stall since January, in spite of the Russian military’s staging costly assaults.

The Ukrainian program will fill out four drone battalions to become drone regiments, expanding each from about 700 soldiers to 2,500 soldiers armed with first-person-view drones, others that drop bombs, and unmanned ground systems. The last includes remote-controlled vehicles armed with machine guns.
All wars spur innovation, such as the invention of radar during World War II and night-vision goggles in Vietnam. But Ukraine’s drone strategy was also born of a major weakness of its military after more than three years of war: the waning motivation of Ukrainians to join the army. As draft evasion has become widespread, force replenishment has become a challenge.
Drones don’t replace troops; in fact, each flight of a first-person-view drone can require up to four soldiers. For flights last week in northeastern Ukraine, a drone squad consisted of a pilot, a navigator, an armorer and a pilot of a retransmitting drone.
But recruiting for these positions is easier than finding infantry troops who will serve in trenches.

With fewer soldiers to lose than Russia, Ukraine wants to limit direct engagements. That’s where the drones come in.
The strategy focuses on a belt of land about 18 miles deep behind Russia’s front line. Saturating the airspace over this area with reconnaissance and strike drones can prevent Russian soldiers from massing for assaults. The drones, flying at about 80 miles per hour, can outpace anything moving on the ground.
“The fair assessment is that it is working,” Michael Kofman, a senior fellow at the Carnegie Endowment for International Peace, said of the drone program. Russian equipment shortages and winter weather also played a role, he said.

The program’s goal is to expand over time, with experienced drone pilots sharing expertise with soldiers in other units, in an attempt to complicate Russian logistics, air defense and electronic warfare operations behind the frontline, Yuriy Fedorenko, commander of one unit, the Achilles Regiment, said in an interview.
“The idea is to cover the whole front line” with drones, he said.

The Ukrainian military did a test run last year when Republicans in Congress stalled a supplemental spending bill for Ukraine. Artillery ammunition ran so low that some crews fired only smoke shells. At one section of the front, near the town of Chasiv Yar, drone crews compensated with a flurry of attacks that disrupted Russia’s offensive.
The drones cost $500 to $750 each, less than large-caliber artillery shells, which cost about $3,000.
Other militaries are taking note. The U.S. Marine Corps this year formed its first experimental attack drone squad flying first-person-view drones.
 
My position that Russia must be stopped because it will send a clear and undeniable message to China who is our real adversary.

Doesn't seem like Europe is willing to make the sacrifices to make that happen so that isn't happening.

Ukraine made a grave grave mistake by trying to join NATO and they will pay the price for generations.

Zelensky **** the bed. He took an unnecessary risk. He should have waited 20 years when Putin was out of the picture and made the move then. Instead he's destroyed his country, wasted trillions, thousands dead and will now potentially lose actual land.
This isn't about Ukraine trying to join NATO. This is about the Maidan Revolution which "coincidentally" is when the little green men started showing up in Crimea. This all started 5 years before Zelensky took office. The narrative you believe, with respect, is wrong.
 
UK could scrap plans to send thousands of troops to Ukraine

Britain is likely to abandon plans to send thousands of troops to protect Ukraine because the risks are deemed “too high”, it can be revealed.
In an apparent softening of plans, Britain and Europe would no longer have a ground force guarding key cities, ports and nuclear power plants to secure the peace.
It is hoped that this change in military support for Ukraine could see Moscow move its red lines to achieve a peace deal.
Instead, the focus for a security commitment to Ukraine would be on the reconstitution and rearmament of Kyiv’s army, with protection from the air and sea.
British and French military trainers would be sent to western Ukraine. This would fulfill a commitment to put forces inside the country, however they would not be near the front line, guard key installations or be there to protect Ukrainian troops.

Aircraft would protect Ukraine’s air space and provide air cover to western troops on the ground. Turkey would play a maritime role under the most likely plans being considered.
Weapons from the UK and Europe would continue to flow so Ukraine would be in a strong position should Russia break the terms of any deal. Nothing has yet been ruled out and the Ministry of Defence is clear that Britain would not be prepared to abandon plans to send troops to the country in some capacity.
A source involved in discussions about a “coalition of the willing” said of plans for a force of tens of thousands of ground troops: “The risks are too high and the forces inadequate for such a task.
“This was always the UK’s thought. It was France who wanted a more muscular approach.”

“The trainers ‘reassure’ by being there but aren’t a deterrence or protection force,” the source said, adding that the risk of getting embroiled in a wider war if a ceasefire broke down was deemed to be too high.
The need to deploy a huge force across Ukraine could affect Britain and Europe’s commitment to Nato’s eastern flank, some fear.

The Times understands that Operation Interflex, the mission to train Ukrainian forces in Britain, would end in the UK by the end of the year. Training would move to a location near Lviv, in western Ukraine.
However, there are concerns in Ukraine that any training force would pull out at the first sign of trouble, as the British did in the days leading up to the full scale invasion.
Officials do not believe President Putin would be willing to accept a “one-sided” peacekeeping force on the ground in Ukraine. It is understood security guarantees and territory are the key areas for negotiation with Russia.
A diplomatic source told The Times: “We will move our position but we want Moscow to break their red lines.”

Russia's VTB board recommends first dividend since start of Ukraine war

Russia's second largest bank, VTB, announced its first dividend payment since the start of the war in Ukraine on Monday.
Shares in the bank rose 25%, according to Moscow Stock Exchange data, after VTB unexpectedly said its board had recommended paying out 50% of 2024's profit to shareholders. CEO Andrei Kostin said this was thanks to the fact that the bank had exceeded its targets for the past year.
 
The Russian Military Moves That Have Europe on Edge

Some 100 miles east of its border with Finland, in the Russian city of Petrozavodsk, military engineers are expanding army bases where the Kremlin plans to create a new army headquarters to oversee tens of thousands of troops over the next several years.

Those soldiers, many now serving on the front lines in Ukraine, are intended to be the backbone of a Russian military preparing to face off with the North Atlantic Treaty Organization, according to Western military and intelligence officials. The Kremlin is expanding military recruitment, bolstering weapons production and upgrading railroad lines in border areas.


Finland, which was forced to surrender territory to the Soviet Union in 1940, has spent decades trying to avoid confrontation with Moscow. Now, having joined NATO after the Ukraine invasion, it is fortifying its border with electronic defenses and barbed wire fencing.

Military experts inside Russia, though, characterize the activity along the Finnish border as part of the Kremlin’s preparation for potential conflict with NATO.

“When the troops are back [from Ukraine], they will be looking over the border at a country they consider an adversary,” said Ruslan Pukhov, director of the Center for the Analysis of Strategies and Technologies, a Moscow-based defense think tank. “The logic of the last decade shows we’re expecting some conflict with NATO.”

Russia’s increased spending has pushed arms factories to capacity, prompting military industrial firms to expand production lines and open new facilities, according to European military officials.

In 2021, before the invasion, Russia made about 40 of its main battle tanks, the T-90M, according to Western intelligence estimates. Now it is producing nearly 300 a year. A senior Finnish military official said almost none are being sent to the front line in Ukraine, but are staying on Russian soil for later use.

Production of artillery cannons and munitions is expected to rise by around 20% this year, and drone quality and production have increased significantly.

One European intelligence official said Russia could try to test the alliance’s cohesion with an incursion into a small NATO nation, such as Estonia, which has a sizable Russian population.

Russia’s ability to take on NATO will depend in part on its ability to rebuild its forces after the war in Ukraine, which has depleted its officer corps but provided experience in precision fire.

“If you ask how soon the Russian military could conduct a limited operation against Baltic states, the answer could be quite soon,” said Michael Kofman, senior fellow in the Russia and Eurasia Program at the Carnegie Endowment for International Peace, a Washington think tank. Baltic officials, he said, are “looking at a two to three year timeline after the war. If the benchmark is a large-scale war, presumably with NATO, the timeline could be more like seven to 10 years, depending on the scenario.”

To concentrate its forces to the West, last year the Kremlin changed the way it organizes its forces inside the country, creating new districts tied to the defense of its biggest cities, Moscow and St. Petersburg.

In the Moscow military district, Russia has been integrating the road and rail routes used by its military with those in neighboring Belarus, Moscow’s closest ally and a staging ground for the initial invasion of Ukraine.

Most of the manpower expansion will take place in the Leningrad district, which faces Estonia, Latvia and Finland. Smaller brigades will nearly triple in size to become divisions of 10,000 around troops, according to Western military and intelligence officials.

“No matter how they may try to innovate on a tactical or operational level, for the Russians, size matters,” said Maj. Gen. Sami Nurmi, Finland’s deputy chief of staff responsible for strategy. “It always comes down to numbers.”

The new infrastructure being built includes storage units and troops housing, said Emil Kastehelmi of the Finland-based Black Bird Group, which analyzes satellite images of Russian military sites. New rail is being laid along the borders with Finland and Norway, and south of St. Petersburg to the Estonian border. Existing lines that cross the region are being expanded.

Finland is watching to see where those new lines might go.
“There are about a dozen points along the Russian-Finnish border where you can cross the border with mechanized forces,” said Maj. Juha Kukkola, a professor at the National Defense University in Helsinki and an expert on the Russian military. “If you see them building new railheads or renovating old ones, it would be good to start paying attention.”

In recent months, Russia has seen a sharp rise in recruitment because of generous one-time signing bonuses at both the federal and regional levels. The payments, in some cases, can amount to around $20,000.

“These one-time payments have gone up considerably, making them more than what many people would earn for an entire year otherwise,” said Iikka Korhonen, the director of the Bank of Finland’s Institute for Emerging Economies, which tracks the Russian economy.

The U.S. estimates that around 30,000 Russians are signing up each month, up from about 25,000 last summer. Some Eastern European intelligence officials say the ranks are now swelling by some 40,000 soldiers a month.


The extra manpower has allowed the military to rotate new troops in and out of Ukraine, and to build new units trained and housed in Russia, according to some European intelligence assessments.

Russia is tailoring its rearmament plans to meet the needs of the new troops to be stationed along its NATO border. Those units will get much of the new equipment. Most of what is being sent to the front line in Ukraine is old and refurbished Soviet-era arms.

“Very rarely are newly built vehicles observed or destroyed lately,” said Dara Massicot, senior fellow in the Russia and Eurasia Program at the Carnegie Endowment, who wrote a report on Russia’s military reconstitution.

“If you look at Russian military history from Peter the Great to today, I can understand why they think they deserve a seat at the table,” said Maj. Kukkola.

“They’ve been in Paris after routing Napoleon, they were in Berlin after routing the Nazis,” he said. “I don’t agree with it, but I understand why they want to change European security architecture, and they’re leveraging their military might to make it happen.”
 
My position that Russia must be stopped because it will send a clear and undeniable message to China who is our real adversary.

Doesn't seem like Europe is willing to make the sacrifices to make that happen so that isn't happening.

Ukraine made a grave grave mistake by trying to join NATO and they will pay the price for generations.

Zelensky **** the bed. He took an unnecessary risk. He should have waited 20 years when Putin was out of the picture and made the move then. Instead he's destroyed his country, wasted trillions, thousands dead and will now potentially lose actual land.
Your post doesn't jive with the facts.

Russia invaded and annexed Crimea/etc in 2014.

Zelensky didn't become president till 2019.
 

Russia’s ministry of defense publishes the obituary of Lt Gen Moskalik, who was assassinated, presumably by Ukraine, in Moscow on April 25. Turns out his job since 2022 was at the nerve center of the war, as commander of the duty shift of the Combat Control Group of the General Staff.

New details emerge of Russian general killed in car bombing near Moscow

The senior Russian general killed in a car bombing in Moscow on April 25 prepared reports for Russian President Vladimir Putin on the situation in Ukraine, according to an obituary from the Russian Defense Ministry on April 29.

Yaroslav Moskalik was a deputy chief of the main operations directorate of Russia's army and reportedly led the combat duty shift overseeing battlefield developments from the Russian General Staff, the obituary, published in the Russian state newspaper Krasnaya Zvezda, reported.

Russia Hopes Warmer Weather Will Boost Flagging Spring Offensive

Ukrainian forces had managed to stabilize the front line in eastern Ukraine during the spring, according to Ukrainian soldiers in the area and analysts who scrutinize openly available data. After seizing hundreds of square miles a month during last fall’s offensive, Russian forces took less than 38 square miles during the first two weeks of April, according to the Washington-based Institute for the Study of War, their slowest rate of advance since beginning the offensive last summer. Meanwhile, Ukrainian forces have been able to win back some territory the Russians seized in the fall.

The question is whether Ukraine can continue to hold the line through the summer, when fighting usually intensifies. Russia has sought to portray further advances as inevitable, suggesting that the U.S. should try to get Kyiv to capitulate rather than continue to resist.

So far, the new spring assaults have yielded little territory and heavy Russian casualties, according to analysts and Ukrainian officials. But conditions will likely grow more difficult for Kyiv as the weather gets warmer.

“We don’t expect the current stabilization to last long,” said one 37-year-old officer, who has been fighting since December in the area around Pokrovsk. “We’ve disrupted the enemy’s momentum, but we’re aware that they’re regrouping and preparing for the next phase of their offensive.”

Ukrainian troops and analysts attribute the Russian slowdown to several factors.

Russian forces are exhausted. Some Russian divisions involved in the assault on Pokrovsk—Moscow’s primary target in recent months—have been fighting nonstop for more than two years, said George Barros, an analyst with ISW.

“The only way you got out was if you died,” Barros said of some divisions fighting in the Pokrovsk area.
He said that the refusal to pause the offensive in Ukraine’s east has led to a host of problems for Moscow’s forces. Materiel and logistics degraded without time for maintenance and repair. New recruits replacing casualties often aren’t well trained or integrated into the unit, limiting their effectiveness.

In addition, the Ukrainians have made some adjustments that have helped them fend off the Russians. Drones now make up the first line of defense. Reconnaissance drones—including many with thermal-vision cameras—scan for any movement along the line of contact, and attack drones pick off advancing Russian troops before they reach Ukrainian trenches, allowing Ukraine to hold territory with far fewer men than in previous wars.

“Because of that innovation,” Barros said, “Ukraine is holding down huge frontages of territory with shockingly few people.”

A battalion commander in the 15th Brigade, who goes by the call sign Korsar, said that drones now account for roughly 85% of the Russian casualties in the area.

On a recent afternoon, he sat in the command post, watching live feeds from surveillance drones, which scoured the trees looking for Russian dugouts. Once they found one, they hammered the position with every kind of drone.

“It’s very rare when they actually make it to our positions and there’s gunfire,” said Korsar, who is 30 years old. “This month, there was only gunfire once.”

However, holding the line primarily with drones is likely to get tougher in the coming months.
Leaves are now returning to the trees in Ukraine, and within a month, they will block drones’ view of Russian positions below. In northeastern Ukraine, where tree lines are thicker than in the fields of the south, that will give advancing Russians far more cover than they have had in recent months.


In addition, the “mud season”—when the ground is sodden from winter rains, making it harder for vehicles to move—is also coming to an end, which may have encouraged Moscow to begin mechanized assaults again, after months of attacking mostly with small groups of infantry on foot.

“They haven’t made much progress, and they’ve been suffering tremendous casualties,” Franz-Stefan Gady, a Vienna-based defense analyst said of the latest Russian assaults. “That’s really due to the Ukrainian defense system.”

Still, he said the Ukrainian systems were likely to come under growing strain in the months ahead.

Russian troops try to advance in Ukraine's Sumy region, governor says

Russian troops are trying to carve out a buffer zone in Ukraine's northeastern Sumy region, although so far without substantial success, the regional governor said on Tuesday.
The Sumy region borders on Russia's Kursk region, where Russian forces have lately recaptured territory seized last year in the Ukrainian military's only major cross-border incursion of the war.

Sumy Governor Oleh Hryhorov said on the Telegram app that four border villages in Sumy - Zhuravka, Veselivka, Basivka and Novenke - were in a "grey zone" due to Russian attacks, but were not under Russian control.
"Currently, the enemy continues to try to carve out a buffer zone on the territory of our region, but has not had any significant success," Hryhorov said. Of the four villages, he said "there is no question of their occupation at the moment".

Russian Offensive Campaign Assessment, April 28, 2025

The commander of a Ukrainian infantry group operating in the Vovchansk direction stated that the situation in the area is more complicated now than it was in February and March 2025 and that Tykhe (east of Vovchansk) is the most active area. The commander reported that Russian forces are more actively conducting artillery strikes and assaults, including with mopeds, and that Russian forces have rotated troops in this direction, increasing the number of Russian forces and reserves. The commander stated that Russian forces are conducting artillery preparation before attacking with armored vehicles and then assault groups.

A Ukrainian brigade operating in the Lyman direction reported on April 28 that Russian forces are conducting assaults ranging in size from small infantry groups to entire detachments. The Ukrainian brigade reported that Russian forces have a personnel advantage in some areas of 10 to 1.

A non-commissioned officer (NCO) in a Ukrainian brigade operating in the Toretsk direction reported that the number of Russian artillery and drone strikes and personnel is gradually increasing compared to previous weeks. The NCO stated that Russian forces are not conducting offensive operations with a large number of armored vehicles, but are conducting daily assaults in small groups, sometimes with bicycles, electric scooters, and motorcycles.
 

We have good results - Zelenskyy highlights sanctions pressure on Russia​


Sanctions imposed by Ukraine and Western countries have significantly impacted Russia’s defense industry, forcing the shutdown of several military-related production facilities, according to the statement made by President Volodymyr Zelenskyy.

Ukrainian President Volodymyr Zelenskyy said that coordinated sanctions from Ukraine and its Western allies have already forced the closure of several Russian defense-related facilities. In his April 29 address, he emphasized the importance of continued pressure on Russia’s influence networks and military-linked trade operations.
Zelenskyy also noted the preparation of a new decision by the National Security and Defense Council and efforts to synchronize Ukrainian sanctions with European partners. “We already have good results, especially in the closure of Russian production sites tied to their defense sector,” he said.

He revealed plans for further talks with the United States on expanding sanctions, aiming to target Russia’s most sensitive areas to compel it toward diplomacy. Zelenskyy reiterated that a complete and unconditional ceasefire must be the first step toward ending the war.

Commenting on Vladimir Putin’s offer of a three-day truce from May 8-10, Zelensky rejected it as a political gesture, contrasting it with the US-backed proposal for a full 30-day ceasefire already supported by Ukraine. “They’re worried about their parade - and rightly so. But they should be worried that the war is still ongoing. They must end it,” he concluded.

In recent weeks, President Volodymyr Zelenskyy has signed a series of decrees enacting new sanctions approved by the National Security and Defense Council (NSDC). On April 18, Ukraine targeted 20 Russian public figures, including singers, athletes, and actors. Earlier, sanctions were imposed on former Ukrainian officials Serhii Arbuzov and Andrii Klyuyev.

On April 11, Zelenskyy also enforced sanctions against 71 individuals and 18 entities linked to Russian state propaganda, including Viktor Medvedchuk’s project Drugaya Ukraina.

These moves are part of a broader strategy to weaken Russia’s influence operations and its shadow fleet, with a strong new sanctions package in preparation.
 

Marat Gabidullin, born in Siberia and raised in Uzbekistan, served in Soviet airborne forces until 1994, then spent three years in prison for shooting a crime boss. After security work in Russia, he joined the Wagner Group in 2015, rose to lead a reconnaissance company, and was badly wounded near Palmyra in 2016. He later advised the ISIS Hunters Battalion and fought at Khasham, but quit Wagner in 2019, briefly ran a Redut detachment in Syria, and left disillusioned. Gabidullin’s 2022 memoir denounced Wagner and Russia’s invasion of Ukraine; he now lives in France.

Journalist and researcher John Lechner reports from conflict zones and specializes in Russian PMCs. His book Death Is Our Business (Bloomsbury, 2025) charts the rise of Wagner, following earlier work such as Beginner’s Chechen and upcoming Circassian and Sango language texts. A former policy analyst for the U.S. Commission on International Religious Freedom and an emerging-markets banker at Deutsche Bank and Lazard, Lechner holds degrees from Harvard (Slavic Languages) and Georgetown (MSFS). Fluent in five languages and conversant in several others, he is a recognized expert on Russian foreign policy and has written for The Washington Post, The New York Times, The Atlantic, and Foreign Policy. He lives in Washington, DC.

A bit hard to follow as Marat has a thick Russian accent and does a lot of pausing with the "uhhhhh" as he searches for the English words BUT very interesting to hear from a Russian that worked for Wagner and was involved in the Battle of Conoco Fields from the other side.
 

Chinese defector exposes chaos in Russian military ranks​


A Chinese man, who had been fighting alongside Russia against Ukraine since May 2024, shared his experiences with the American news station CNN. The man, who joined Vladimir Putin's army to "experience military life abroad," quickly realized it was a mistaken decision.
In a conversation with CNN, the Chinese man described the difficulties he faced on the front line. After a dispute with a commander over protective equipment, he was locked in a dark, barred pit for 21 days.

"I have to state a few truths and warn others. Do not come here. The number two military in the world is a complete joke," he said, highlighting poor equipment, inadequate logistics, mistreatment, and rampant corruption as the main problems in Putin's army.

Chinese volunteers in the Russian army​

At the beginning of April 2025, Ukrainians captured two Chinese nationals supporting the Russian invasion. Ukrainian President Volodymyr Zelensky stated that over 150 Chinese citizens are fighting within the ranks of the Russians.

The Chinese Ministry of Foreign Affairs emphasized that China has not sent troops to Ukraine and advises its citizens against traveling to the country.

The Chinese man, who signed a year-long contract with the Russian Ministry of Defense, fought near Bakhmut, earning $2,400 a month along with additional bonuses for captured miles. He is currently recovering from injuries sustained.
 

Russia's economic miracle fades as growth grinds to a halt​


After years of unexpected resilience, the Russian economy is showing clear signs of slowing down. Indicators suggest that the annual growth rate has dropped from 5% to nearly 0%. High inflation has prompted the central bank to keep interest rates at 21%, and global trade tensions are further weakening Russian markets, which rely on the export of raw materials.
Sergey Lavrov, Russia's Foreign Minister, recently told the American network CBS that Russia has become immune to Western sanctions because it has "restructured the economy to be self-sufficient." These assurances contradict the analysis conducted by "The Economist."

The weekly publication suggests that the first symptoms of economic slowdown are visible nationwide, from Kaliningrad to Vladivostok. Evidence for this includes data from Goldman Sachs, which suggests that since the end of last year, Russia’s annual economic growth rate has fallen from about 5% to nearly zero. Similar trends are shown by the monthly growth estimates prepared by the Russian Development Bank VEB. Sberbank, Russia's largest lender, also reports a downward trend in high-frequency business turnover.

Although the Russian government is more reserved in its comments, it admits that the situation has changed. At the beginning of April, the Russian central bank reported that declines in production had been recently registered in many sectors, driven by rapidly falling demand.

The end of the economic miracle​

Over the last three years, signals from beyond Poland’s eastern border have been much more troubling. Despite sanctions and wartime expenditures, Russia’s economy exceeded almost all forecasts. This was due to a combination of fiscal expansion, high commodity prices, and the militarization of the economy. After the full-scale invasion of Ukraine in 2022, economists predicted a drop in Russia's annual GDP of up to 15%. In reality, the rate fell by only 1.4%, then increased by 4.1% in 2023 and 4.3% in 2024. Consumer confidence approached record-high levels.

As it seemed that Donald Trump, the President of the United States, might give Vladimir Putin what he wants to end the war in Ukraine, some analysts predicted Russia’s economy would accelerate even more in 2025. Current data points to a completely different scenario.
What is behind the sudden slowdown? Three reasons seem most likely. The first is what Russia's central bank euphemistically calls the "structural transformation" of the economy. Previously oriented towards the West and accepting private enterprise (with some restrictions), Russia has since 2022 shifted to a wartime economy oriented towards the East.

This transformation required massive investments, not only in arms and ammunition factories but also in new supply chains to increase trade with China and India, as well as to boost domestic production. By mid-2024, real capital expenditures were 23% higher than at the end of 2021.

According to the central bank, this adaptation is now complete. Military spending follows a similar pattern. Julian Cooper from the Stockholm International Peace Research Institute (SIPRI) estimates that this year, military expenditures will rise by only 3.4% in real terms, a drastic slowdown compared to the 53% increase last year. Weaker spending on "structural transformation" means slower growth.

Inflation and interest rates slow the economy​

The second factor is monetary policy. Inflation in Russia has been above the central bank’s target of 4% annually for months, even exceeding 10% in February and March. This is due not only to the growing pace of military spending but also to a labor shortage caused by conscription and the emigration of skilled workers. Last year, nominal wages in Russia rose by 18%, forcing companies to raise prices. In response, the central bank tightened control.


On April 25, the Russian central bank decided to keep the benchmark interest rate at 21%—the highest in the 21st century. Its super-hawkish stance may finally be yielding results. High rates encourage capital inflow into the ruble, making imports cheaper. Russians' inflation expectations over the next 12 months are falling from a recent peak of about 14% to around 13%. High-frequency data suggests that inflation is gradually decreasing.

Instead of spending money, Russians are placing it in savings accounts. High rates further discourage capital investments. If that were the whole story, perhaps Putin would remain satisfied. For the Russian government, a small, gradual slowdown might be a price worth paying if it means taming inflation.

The problem is that the slowdown is neither gradual nor small. This is occurring because, in recent weeks, a third factor has started to dominate all others—external conditions have deteriorated. As the U.S. trade war escalates, global growth forecasts have fallen, and oil prices have followed suit.


Falling oil prices a disaster for Russia​

Economists are particularly concerned about the situation in China—Russia's largest oil buyer. The International Monetary Fund has lowered its expectations for China’s GDP growth in 2025 from 4.6% to 4%. Falling oil prices are causing numerous problems in Russia. They have hit the stock market, where oil companies account for a quarter of the capitalization. The Micex Index, which tracks the stock prices of over 50 major listed companies, has fallen by one-tenth from the last peak.

As export revenues decline, falling oil prices directly affect the real economy. The Russian budget is already feeling the effects—in March, tax revenues from oil and gas fell by 17% compared to the previous year. On April 22, Reuters reported, citing official documents, that the government expects a sharp drop in oil and gas sales this year.


Germany also suffers. they lost hundreds of billions of euros due to crises​

Losses are also visible on the other side of the political barricade. According to the German Economic Institute (IW) in Cologne, over the past three years, the German economy has not managed to exceed the level of 2019 after an initial post-pandemic recovery. Without pandemic-related losses and subsequent crises, German GDP would be about 735 billion euros higher.

The most serious crisis since German reunification​

Michael Grömling, Chief Economist at the IW, emphasizes the gravity of the current situation, describing it as the most severe economic downturn Germany has faced since reunification. He attributes this deep crisis to the combined effects of the COVID-19 pandemic and the war in Ukraine, which have effectively brought business investments to a standstill, thereby constraining the country's production capacity in the foreseeable future.


The total economic losses due to reduced private consumption over the past five years are estimated to be over 470 billion euros. This translates to about 6,000 dollars per German resident.

Grömling also highlights a notable change in the pattern of economic losses. He explains that during the pandemic's peak, the decline in consumer spending was the primary driver of economic damage. However, in more recent years, the growing impact has come from a significant shortfall in investment, which has become the dominant source of financial strain.
 

Marat Gabidullin, born in Siberia and raised in Uzbekistan, served in Soviet airborne forces until 1994, then spent three years in prison for shooting a crime boss. After security work in Russia, he joined the Wagner Group in 2015, rose to lead a reconnaissance company, and was badly wounded near Palmyra in 2016. He later advised the ISIS Hunters Battalion and fought at Khasham, but quit Wagner in 2019, briefly ran a Redut detachment in Syria, and left disillusioned. Gabidullin’s 2022 memoir denounced Wagner and Russia’s invasion of Ukraine; he now lives in France.

Journalist and researcher John Lechner reports from conflict zones and specializes in Russian PMCs. His book Death Is Our Business (Bloomsbury, 2025) charts the rise of Wagner, following earlier work such as Beginner’s Chechen and upcoming Circassian and Sango language texts. A former policy analyst for the U.S. Commission on International Religious Freedom and an emerging-markets banker at Deutsche Bank and Lazard, Lechner holds degrees from Harvard (Slavic Languages) and Georgetown (MSFS). Fluent in five languages and conversant in several others, he is a recognized expert on Russian foreign policy and has written for The Washington Post, The New York Times, The Atlantic, and Foreign Policy. He lives in Washington, DC.

A bit hard to follow as Marat has a thick Russian accent and does a lot of pausing with the "uhhhhh" as he searches for the English words BUT very interesting to hear from a Russian that worked for Wagner and was involved in the Battle of Conoco Fields from the other side.

that wasn't a battle.

i don't call it a battle when i swat flies.
 

Marat Gabidullin, born in Siberia and raised in Uzbekistan, served in Soviet airborne forces until 1994, then spent three years in prison for shooting a crime boss. After security work in Russia, he joined the Wagner Group in 2015, rose to lead a reconnaissance company, and was badly wounded near Palmyra in 2016. He later advised the ISIS Hunters Battalion and fought at Khasham, but quit Wagner in 2019, briefly ran a Redut detachment in Syria, and left disillusioned. Gabidullin’s 2022 memoir denounced Wagner and Russia’s invasion of Ukraine; he now lives in France.

Journalist and researcher John Lechner reports from conflict zones and specializes in Russian PMCs. His book Death Is Our Business (Bloomsbury, 2025) charts the rise of Wagner, following earlier work such as Beginner’s Chechen and upcoming Circassian and Sango language texts. A former policy analyst for the U.S. Commission on International Religious Freedom and an emerging-markets banker at Deutsche Bank and Lazard, Lechner holds degrees from Harvard (Slavic Languages) and Georgetown (MSFS). Fluent in five languages and conversant in several others, he is a recognized expert on Russian foreign policy and has written for The Washington Post, The New York Times, The Atlantic, and Foreign Policy. He lives in Washington, DC.

A bit hard to follow as Marat has a thick Russian accent and does a lot of pausing with the "uhhhhh" as he searches for the English words BUT very interesting to hear from a Russian that worked for Wagner and was involved in the Battle of Conoco Fields from the other side.

that wasn't a battle.

i don't call it a battle when i swat flies.
Ok.... the fly swatting at Conoco Fields.... feel better?
 

Marat Gabidullin, born in Siberia and raised in Uzbekistan, served in Soviet airborne forces until 1994, then spent three years in prison for shooting a crime boss. After security work in Russia, he joined the Wagner Group in 2015, rose to lead a reconnaissance company, and was badly wounded near Palmyra in 2016. He later advised the ISIS Hunters Battalion and fought at Khasham, but quit Wagner in 2019, briefly ran a Redut detachment in Syria, and left disillusioned. Gabidullin’s 2022 memoir denounced Wagner and Russia’s invasion of Ukraine; he now lives in France.

Journalist and researcher John Lechner reports from conflict zones and specializes in Russian PMCs. His book Death Is Our Business (Bloomsbury, 2025) charts the rise of Wagner, following earlier work such as Beginner’s Chechen and upcoming Circassian and Sango language texts. A former policy analyst for the U.S. Commission on International Religious Freedom and an emerging-markets banker at Deutsche Bank and Lazard, Lechner holds degrees from Harvard (Slavic Languages) and Georgetown (MSFS). Fluent in five languages and conversant in several others, he is a recognized expert on Russian foreign policy and has written for The Washington Post, The New York Times, The Atlantic, and Foreign Policy. He lives in Washington, DC.

A bit hard to follow as Marat has a thick Russian accent and does a lot of pausing with the "uhhhhh" as he searches for the English words BUT very interesting to hear from a Russian that worked for Wagner and was involved in the Battle of Conoco Fields from the other side.

that wasn't a battle.

i don't call it a battle when i swat flies.
Ok.... the fly swatting at Conoco Fields.... feel better?
much, thank you :)
 
Putin Is Said to Demand Ukraine Land Despite US Pressure

President Vladimir Putin is insisting that Russia must take control of four regions of Ukraine it doesn’t fully occupy as part of any agreement to end his war, according to three people in Moscow familiar with the matter.

Trump’s envoy Steve Witkoff sought to persuade Putin that Russia should agree to a ceasefire that halts fighting along the current frontlines during lengthy talks at the Kremlin on Friday, according to two of the people, who asked not be identified discussing sensitive issues. Instead, the Russian leader maintained his maximalist position on territory, they said.

Russia intensifies offensive operations in 3 regions, pushes toward Dnipropetrovsk Oblast, Ukraine's military says

Russian forces have recently intensified offensive operations in three Ukrainian oblasts – Donetsk, Zaporizhzhia, and Kherson – Ukraine's Southern Defense Forces spokesperson, Vladyslav Voloshyn, said on April 29 during Ukraine's state-run telethon.

The statement follows Russian President Vladimir Putin's announcement of a three-day truce in the war against Ukraine to mark the 80th anniversary of the end of World War II in Europe on May 8-11.

Russian forces have intensified their push toward Novopavlivka, a village in Dnipropetrovsk Oblast, which borders Donetsk Oblast, according to Voloshyn, conducting 23 combat engagements over the past day in the area.

"Fierce fighting continues there, and the enemy is rushing to the border of Dnipropetrovsk, Zaporizhzhia, and Donetsk oblasts," Voloshyn said.

Europe ‘would struggle to put 25,000 troops on the ground in Ukraine’

Europe would struggle to collectively muster 25,000 troops to be part of a “deterrence” force in Ukraine because its armies are undermanned and underfunded, sources have disclosed.
The Times was given a rare insight into conversations between Europe’s defence ministers and military chiefs as they thrashed out plans for a “coalition of the willing” force.
Admiral Sir Tony Radakin, the British chief of the defence staff, is said to have asked his counterparts on the Continent if they could put together a 64,000-strong force to send to the country in the event of a peace deal.
He said Britain would be willing to send up to 10,000 personnel in a meeting earlier this month, it is understood.
However, in subsequent meetings, defence ministers across Europe said there was “no chance” they could reach that number and that even 25,000 would “be a push for a joint effort”, a source privy to discussions in Brussels said.

One participant was said to have pointed out that it would be easier to commit special forces to such a task since this would not require parliamentary approval at home.
Estonia and Finland were reportedly concerned that any deployment would “dilute” their own border defences, and Poland, Spain and Italy made clear they will not commit any soldiers, according to the source.
“Without large populous countries committing [troops], it is a dead end,” added the source. France has said it would commit about the same number as the UK, between 5,000 and 10,000 troops, it is understood.
A second source, privy to discussions in the UK, said that Finland and Germany were also generally against sending ground forces, although it is understood Berlin has not completely ruled out such a move.
The source said: “Once you take those off the table, where’s the army going to come from? With others not there, we would be left exposed.”
The source pointed out that the British Army, which is steadily shrinking, was also suffering from an artillery shortage and problems with “enablers”, such as supply trucks and other equipment they would normally receive from America.

About 4,700 North Korean soldiers have been killed or wounded fighting for Russia, South Korea says

An estimated 4,700 North Korean soldiers have been killed or wounded while fighting alongside Russia against Ukrainian forces, South Korea’s spy agency told lawmakers Wednesday.

The assessment came two days after North Korea confirmed for the first time that it had sent combat troops to help Russia recapture parts of the Kursk region, which it lost control of to a surprise Ukrainian incursion last year.

In a closed-door parliamentary committee briefing, South Korea’s National Intelligence Service said North Korea had suffered 4,700 casualties, including 600 deaths, on the Russia-Ukraine battlefronts, according to Lee Seong Kweun, one of the lawmakers who attended the meeting.

Lee told reporters the NIS said that 2,000 injured North Korean soldiers were repatriated to North Korea by air or train between January and March. He cited the NIS as saying the dead North Korean soldiers were cremated in Russia before their remains were sent back home.

What's next for North Korean troops fighting for Russia? A possible Ukraine deployment, experts, officials say

Former Defense Minister Andriy Zagorodnyuk, chairman of the Kyiv-based Center for Defense Strategies, warned that Moscow likely plans to start deploying North Korean troops to the front line in Ukraine, and that Pyongyang could continue sending more soldiers to Russia as assault troops.

Ruslan Gorbenko, a lawmaker from the ruling Servant of the People who regularly travels to the war-torn east, agreed with Zagorodnyuk’s assessment, saying that the North Korean troops’ deployment to the front in Ukraine appears inevitable.

“In 2025, we will see North Korean troops as separate units in the assault on the territory of Ukraine,” Gorbenko told the Kyiv Independent, stressing that it is his personal opinion.

Russia starts building bridge to connect with North Korea

The bridge, which is being built by a Sochi company, is expected to be completed in a year and a half.

At present, only a railway bridge and air links are in place between Russia and North Korea. The road bridge is expected to "increase cargo traffic and develop passenger traffic".


In a major procurement move, at least one NATO country is reportedly attempting to acquire Ukraine's highly successful Delta battlefield management system.

The Delta system is both accessible and feature-rich, enabling increased awareness and coordination across the joint force.
 
US and Ukraine sign minerals deal after Trump presses Kyiv to pay back US for helping repel Russia

The two sides offered only barebone details about the structure of the deal, which they called the United States-Ukraine Reinvestment Fund. But it is expected to give the U.S. access to Ukraine’s valuable rare earth minerals while providing Kyiv a measure of assurance about continued American support in its grinding war with Russia.

The signing comes two months after a different but similar agreement was nearly signed before being derailed in a tense Oval Office meeting involving President Donald Trump, Vice President JD Vance and Ukrainian President Volodymyr Zelenskyy.

The U.S. has been seeking access to more than 20 raw materials deemed strategically critical to its interests, including some non-minerals such as oil and natural gas. Among them are Ukraine’s deposits of titanium, which is used for making aircraft wings and other aerospace manufacturing, and uranium, which is used for nuclear power, medical equipment and weapons. Ukraine also has lithium, graphite and manganese, which are used in electric vehicle batteries.

After Kyiv felt the initial U.S. draft of the deal disproportionately favored American interests, it introduced new provisions aimed at addressing those concerns. According to Shmyhal, the latest version would establish an equal partnership between the two countries and last for 10 years. Financial contributions to a joint fund would be made in cash, and only new U.S. military aid would count toward the American share. Assistance provided before the agreement was signed would not be counted. Unlike an earlier draft, the deal would not conflict with Ukraine’s path toward European Union membership — a key provision for Kyiv.
 
Body of Ukrainian journalist who died in Russian detention returned by Moscow with signs of torture and with missing organs

Belousov said that repeated DNA analyses confirmed the body belonged to Roshchyna, even though it reportedly arrived from Russia labeled as “an unidentified male.” He said the state of the body made it impossible to determine the cause of Roshchyna’s death, but added that Ukraine was working with international forensic experts to get more answers. Roshchyna’s colleagues at Ukrainska Pravda said her body was returned from Russia with missing organs. Citing members of the investigating team who handled her remains, they said the brain, eyeballs and part of the trachea, or windpipe, were missing, in what they said could have been an attempt by Russia to disguise the cause of death.
 
Second article on the dead Ukrainian journalist, in a lot more depth:

 
About 600 N. Korean soldiers killed fighting for Russia against Ukraine

The National Intelligence Service (NIS) gave the assessment during a closed-door briefing for the National Assembly's intelligence committee, two days after North Korea confirmed for the first time that Pyongyang has deployed troops to Russia to support Moscow's war against Ukraine.

North Korea has sent about 15,000 troops to Russia and there have been some 4,700 casualties, including about 600 deaths, the NIS told lawmakers, according to Reps. Lee Seong-kweun of the People Power Party and Kim Byung-kee of the Democratic Party.

North Korea has deployed its troops to Russia over two phases, and fighting has decreased since April after Moscow took back most areas of its front-line region of Kursk, the lawmakers quoted the NIS as saying.

The spy agency has yet to detect signs of another troop deployment by North Korea but did not rule out its possibility, they said.

The NIS assessed that the North Korean soldiers in Russia appeared to have gained modern combat skills, including drone operations, although they showed signs of inexperience at an early stage of deployment.

Many of the North Korean soldiers who were killed in action were cremated in Russia before their remains were sent to North Korea, while some 2,000 wounded soldiers returned to the North via air and rail routes in the January-March period, the NIS told lawmakers.

In return for troop deployment and weapons exports to Russia, the spy agency believes North Korea has received a spy satellite launchpad, drones, electronic warfare equipment and SA-22 surface-to-air missiles.

The two countries are also in talks for industrial modernization in 14 sectors, including aviation, energy and tourism, with about 15,000 North Korean laborers being dispatched to Russia, it said.

The NIS also believes that there is a possibility that North Korean leader Kim Jong-un will not attend Russia's Victory Day ceremony on May 9, citing the lack of signs of security measures if Kim were to take part.


The Kyiv Post reports that, in a first for the Trump administration, the White House has approved the direct sale of more than $50 million of defense-related products for Ukraine.

This move follows the recent signing of the US-Ukraine resource deal.

Russia seeks to create bridgehead to cross Dnipro River, Ukrainian forces say

Russian forces have ramped up their operations in the southern part of the Dnipro River island system in Kherson Oblast, aiming to land on Buhaz Island, establish a bridgehead and cross the Dnipro River.

Source: Ukrinform news agency, citing Colonel Vladyslav Voloshyn, spokesperson for Defence Forces of Ukraine's South, on the national joint 24/7 newscast

Quote: "The enemy is trying to cross the water barriers and has just opened up a front; let's call it a new one. The front where they've intensified their activity and made several attempts to land in the river area over the past few days is in the south of the Dnipro River island system. In the very south, near the village of Kizomys, there is the island of Buhaz. There, the enemy is trying to land on this island, seize a bridgehead and cross the Dnipro River from the south."

Russian Offensive Campaign Assessment, April 30, 2025

A Russian insider source claimed on April 30 that three Ukrainian drones damaged a Russian S-400 air defense missile system radar station on April 25 near occupied Saky, Crimea.

Russian enlistment bonuses cost $21m a day

Bonuses for new recruits joining the Russian army are costing $21 million a day (£15.6million), according to data.

Moscow’s military is recruiting around 30,000 new soldiers each month, an increase of 5,000 more than in the summer of 2023, with some months reaching up to 40,000.

Its successful recruitment drive is largely down to generous enlistment bonuses as well as military propaganda, while the Russian defence ministry often tells the new volunteers they will not be sent to Ukraine.

Russia’s government spends around 2 billion rubles ($21.5 million) per day on one-time enlistment bonuses, according to calculations by Janis Kluge, a researcher at the German Institute for International and Security Affairs, based on data from Russia’s ministry of finance.
 
I'm not a fan of pressuring/threatening Ukraine with this deal, but it doesn't seem "that bad". I don't see it doing anything to solve the war, but hopefully it gives our current administration the desire to at least continue the material/financial assistance.
 

U.S. drafts Russia sanctions plan amid stalled ceasefire​


According to the agency’s sources, President Donald Trump has yet to make a decision while diplomatic efforts continue. The sources declined to elaborate on the specific measures under consideration, stressing that any final decision rests with the president.

Ukraine and its allies are urging Washington to tighten the screws on Moscow, including by further restricting energy exports and oil revenue. While the United States and European Union have already imposed what Bloomberg describes as “unprecedented sanctions,” those measures have failed to force Putin to halt the invasion.

The agency also noted that the White House’s approach to Ukraine is being shaped by competing views among senior officials — including special envoy Steve Witkoff, who is believed to be more sympathetic to Russia.

Trump has previously threatened to impose sanctions on Russia if Putin refuses to engage seriously in peace talks. He has not ruled out measures targeting Russia’s banking sector or the introduction of so-called secondary sanctions. The U.S. National Security Council, State Department and Witkoff’s office did not respond to Bloomberg’s request for comment.

Earlier, Bloomberg reported that Witkoff had attempted to persuade Putin to agree to a ceasefire along the current front line during their April 25 meeting. But, according to sources, Putin remained firm, demanding full occupation of four Ukrainian oblasts.

One of the agency’s sources said the stalled negotiations would require direct contact between President Trump and Putin to move forward.

After meeting with President Volodymyr Zelenskyy at the Vatican on April 26, Trump wrote on Truth Social that Putin “may not want to stop the war and may be deceiving me.”

U.S. Vice President J.D. Vance said on May 1 that Washington hopes “within the next 100 days” to bring Ukraine’s and Russia’s positions as close as possible.

Earlier, the White House had hinted that the United States could withdraw from talks if Ukraine and Russia make the negotiation process “too complicated.”
 

The West Is Sending Broken F-16 Fighters to Ukraine. Here’s Why.​

Last week, pictures emerged of disassembled F-16 Viper fighters being loaded onto a Antonov Airlines An-124 at the Tucson International Airport, not far from the “boneyard” at Davis-Monthan Air Force Base where decommissioned military aircraft are stored. Now, the Air Force has confirmed that the F-16s have been donated to Ukraine to supply their fleet of F-16s with spare parts.

According to an Air Force spokesperson, the donation “has supported the sustainment of European-donated F-16s to Ukraine by providing disused and completely non-operational F-16s to Ukraine for parts. These F-16s were retired from active U.S. use and are not flyable. Importantly, they lack critical components such as an engine or radar and could not be reconstituted for operational use.”

The West Is Struggling to Sustain the Ukrainian F-16 Fleet​

As the Air Force spokesperson mentioned, the F-16s were without engine or radar—or, for that matter, vertical stabilizers, nose cones, or wings. In short, the birds would never fly again.

And while the Air Force was forthright about the non-operational F-16s being donated to Ukraine, it would not disclose exactly which F-16 variants were being donated. Given that the F-16s were shrink-wrapped, internet sleuths will not able to discern which variant either—although The War Zone surmised that, because of the IFF antennas on the nose, the F-16s were likely older Block 15 Air Defense Fighter (ADF) variants formerly stationed with Air National

Before the Air Force confirmed that the F-16 shipment was for Ukraine, some speculation held that it might have been intended for Poland instead. Flight tracking showed that the An-124 that accepted the F-16s took off from Tucson on April 26 and landed at Rzeszow-Jasionka Airport in Poland. Of course, that airport is an important hub for transporting western-supplied aid to Ukraine; but Poland is also a key operator of the F-16 and could have used the parts for its own readiness.

Instead, the jets will head to Ukraine, who has now been promised 85 operational F-16s from Netherlands, Belgium, Denmark, and Norway. Notably, “while the [non-functional] airframes provided by the United States won’t add to this flyable total, they will nevertheless deliver a significant boost when it comes to supporting Ukraine’s growing Viper fleet,” The War Zone reported. “The U.S. has not been interested in directly supplying Ukraine with flyable F-16s, but that could always change at some point.”


Sustaining the Ukrainian’s F-16 fleet may become increasingly difficult. F-16 stocks are dwindling, even within the United States. At the boneyard, where the donated decommissioned F-16s came from, fewer than four hundred F-16s remain in storage, many of which are not capable of ever flying again. Ukraine’s need for spare parts for their growing fleet of F-16s, will be a constant problem moving forward.

And in addition to the need for spare parts, the Ukrainians will of course have to contend with attrition; the Ukrainians have already lost at least two F-16 fighters and their pilots. The F-16s donated last week will help ameliorate the problem—but certainly will not solve it.
 

For the first time in warfare history, a fighter jet was shot down by a naval kamikaze drone equipped with missiles

Yesterday, a Ukrainian 🇺🇦 USV shot down a $50 million Russian Su-30 fighter jet over the Black Sea, +500km from Odesa, using a reconfigured R-73 air-to-air missile


A Ukrainian missile-armed naval drone in the eastern Black Sea, near Novorossiysk, last night shot down a Russian Su-30 jet, according to Russian account. Likely first such downing. The crew is reported to have been rescued by a passing commercial vessel.


Russia is developing its military infrastructure and conducting organizational reforms near Nato’s northern flank, especially near Finland. News agencies from different countries have asked me about the topic, and in this thread I will share some recent observations. 1/

Firstly, a brief overview of the organisational level. In 2024, Russia reestablished the Leningrad Military District (LMD) as a part of a larger reform of the military districts. The LMD covers the north-western Russia, including Baltic and arctic directions. 2/

At the same time, Russia is expanding its existing brigades into divisions and bringing entirely new troops into Finland's neighboring regions. For example, the 138th Guards Motor Rifle Brigade from Kamenka was recently transformed into the 69th Motor Rifle Division. 3/

Changes in organizations mean that tens of thousands of new soldiers will be deployed in the regions surrounding Finland in the coming years. This also means that major infrastructure projects will likely begin in the near future in Karelia and Petsamo, among other areas. 4/
There are already signs of what is to come. Firstly, in Kamenka, there has been a need for more accommodation space. In the spring of 2024, the Russians erected over 140 tents in the training grounds and constructed an earth wall around them. The tents are still there. 5/

This indicates the Russians needed a temporary solution for a growing number of soldiers and military activity, which exceeds Kamenka’s normal capacity. This is likely not due to a singular big exercise. No large construction projects have been observed near the base yet. 6/
In the future, the 44th Army Corps or elements of it will possibly be stationed in the Petrozavodsk region. However, currently massive construction projects don’t seem to be underway, only the storage site near Petrozavodsk has seen some improvement. 7/

The new halls serve two purposes. They shelter the vehicles and equipment from the weather, but they also make it more difficult for adversaries to gather intelligence of such places, as the amount of equipment in these halls e can only be estimated, not precisely counted. 8/
Even though the Russians have moved some equipment from the Petrozavodsk storage site during the full-scale invasion, it’s far from empty.

Similar halls have also been constructed a bit further north, in Alakurtti, home for the 80th Separate Arctic Motor Rifle Brigade. 9/

Generally, there’s been limited changes in the infrastructure of the army bases near Finland and Norway during 2022-25, but I expect to see more - if not this summer, then the next one. The reforms start at organizational level, and construction projects will follow. 10/
Other recent changes are related to, for example, singular buildings or fortifications for training purposes. Some new trenches have been dug here and there, most likely because the war in Ukraine has shown how much of the war is being fought in fortifications. 11/
In the next thread I will go through some of the most recent changes in the northern air bases. There have been some surprising developments too. Me and other analysts at @Black_BirdGroup will continue to monitor the developments near our borders and in the LMD. 12/12

In the first four months of 2025, Russia likely sustained approximately 160,000 casualties


“U.S. officials have finalized new economic sanctions against Russia, including banking and energy measures, to intensify pressure on Moscow to embrace U.S. President Donald Trump’s efforts to end its war on Ukraine, according to three U.S. officials and a source familiar with the issue.

The targets include state-owned Russian energy giant Gazprom and major entities involved in the natural resources and banking sectors, said an administration official”
 
Intelligence suggests Putin’s immediate goals for Ukraine war may have shifted

New intelligence reviewed by US and Western officials suggests Russian President Vladimir Putin may have shifted his immediate focus in the Ukraine war toward the shorter-term objectives of solidifying his hold on territory his forces have seized and boosting his country’s struggling economy, multiple people familiar with the matter told CNN.

This represents an evolution from recent US and Western intelligence assessments suggesting that Putin felt the state of the war was to his advantage, that he had the momentum as well as the manpower to sustain a longer fight against a faltering Ukraine and seize the entire country.

The perception Putin may have shifted his thinking has played into President Donald Trump and his negotiators’ belief that the Russian president may be more willing to consider a potential peace deal than in the past, two US sources familiar with the matter told CNN.

However, senior US officials remain skeptical of Putin and his repeated assertions in ongoing talks that he wants a peace deal, even though what is being proposed by the US is incredibly generous to Russia, handing them most of the territory they’ve taken. There is also a widespread belief that even if Russia agrees to a version of the agreement on the table it may look to resume the war and try to seize more of Ukraine in the long-term.

“I think that he may be thinking - I don’t want to say thinking smaller - but thinking about what a reasonable nearer-term objective is,” said a senior western intelligence official.

Russian Offensive Campaign Assessment, May 2, 2025

Russian forces are currently sustaining a higher casualty rate per square kilometer gained than in Fall 2024. Russian forces gained an estimated 2,949 square kilometers at the cost of 174,935 casualties between September and December 2024 — an average of 59 casualties per square kilometer taken. Russian casualty rates consistently increased throughout September, October, November, and December 2024 and peaked at an estimated 49,135 total monthly casualties in December 2024. Monthly Russian rates of advance plateaued at 839 square kilometers in November 2024, however, and began to slow in December 2024 to an assessed 593 square kilometers and have continued to slow in 2025 (with the exception of the elimination of the Kursk salient). Russian gains have been 45 percent slower between January and April 2025 than in the period between September and December 2024, although Russian casualty rates have only decreased by 10 percent in that interval. The Russian military command thus appears to be tolerating similar personnel loss rates despite a significant decrease in the rate of territorial gains.

Russia has thus far sustained these casualties and the current tempo of offensive operations by rapidly deploying low quality troops to frontline units, although the reliance on such troops is also hindering Russia's ability to conduct complex operations and make rapid advances in Ukraine. ISW has not observed a notable decrease in the tempo of Russian offensive operations along the frontline in recent months, despite the slowing rates of advance, suggesting that Russia is generating enough forces to sustain these casualties without having to deprioritize any frontline area. ISW has repeatedly observed reports that new Russian recruits only receive a month of training before deploying to Ukraine, and this limited training is likely constraining recruits' combat capabilities and the Russian military's overall capacity to successfully conduct complex operations. The Russian military command is currently prioritizing funneling poorly trained recruits into highly attritional infantry assaults to offset personnel losses in Ukraine while sustaining the current tempo of operations, possibly at the expense of Russia's long-term warfighting capabilities. The Russian military does not have a reserve pool of well-trained troops who are not currently engaged in combat in Ukraine and can rapidly deploy along the frontline, and the Russian military command's decision to funnel poorly trained troops to the frontline in Ukraine is undermining Russia's ability to create a pool of such forces.
 

Russia's economic miracle fades as growth grinds to a halt​


After years of unexpected resilience, the Russian economy is showing clear signs of slowing down. Indicators suggest that the annual growth rate has dropped from 5% to nearly 0%. High inflation has prompted the central bank to keep interest rates at 21%, and global trade tensions are further weakening Russian markets, which rely on the export of raw materials.
Sergey Lavrov, Russia's Foreign Minister, recently told the American network CBS that Russia has become immune to Western sanctions because it has "restructured the economy to be self-sufficient." These assurances contradict the analysis conducted by "The Economist."

The weekly publication suggests that the first symptoms of economic slowdown are visible nationwide, from Kaliningrad to Vladivostok. Evidence for this includes data from Goldman Sachs, which suggests that since the end of last year, Russia’s annual economic growth rate has fallen from about 5% to nearly zero. Similar trends are shown by the monthly growth estimates prepared by the Russian Development Bank VEB. Sberbank, Russia's largest lender, also reports a downward trend in high-frequency business turnover.

Although the Russian government is more reserved in its comments, it admits that the situation has changed. At the beginning of April, the Russian central bank reported that declines in production had been recently registered in many sectors, driven by rapidly falling demand.

The end of the economic miracle​

Over the last three years, signals from beyond Poland’s eastern border have been much more troubling. Despite sanctions and wartime expenditures, Russia’s economy exceeded almost all forecasts. This was due to a combination of fiscal expansion, high commodity prices, and the militarization of the economy. After the full-scale invasion of Ukraine in 2022, economists predicted a drop in Russia's annual GDP of up to 15%. In reality, the rate fell by only 1.4%, then increased by 4.1% in 2023 and 4.3% in 2024. Consumer confidence approached record-high levels.

As it seemed that Donald Trump, the President of the United States, might give Vladimir Putin what he wants to end the war in Ukraine, some analysts predicted Russia’s economy would accelerate even more in 2025. Current data points to a completely different scenario.
What is behind the sudden slowdown? Three reasons seem most likely. The first is what Russia's central bank euphemistically calls the "structural transformation" of the economy. Previously oriented towards the West and accepting private enterprise (with some restrictions), Russia has since 2022 shifted to a wartime economy oriented towards the East.

This transformation required massive investments, not only in arms and ammunition factories but also in new supply chains to increase trade with China and India, as well as to boost domestic production. By mid-2024, real capital expenditures were 23% higher than at the end of 2021.

According to the central bank, this adaptation is now complete. Military spending follows a similar pattern. Julian Cooper from the Stockholm International Peace Research Institute (SIPRI) estimates that this year, military expenditures will rise by only 3.4% in real terms, a drastic slowdown compared to the 53% increase last year. Weaker spending on "structural transformation" means slower growth.

Inflation and interest rates slow the economy​

The second factor is monetary policy. Inflation in Russia has been above the central bank’s target of 4% annually for months, even exceeding 10% in February and March. This is due not only to the growing pace of military spending but also to a labor shortage caused by conscription and the emigration of skilled workers. Last year, nominal wages in Russia rose by 18%, forcing companies to raise prices. In response, the central bank tightened control.


On April 25, the Russian central bank decided to keep the benchmark interest rate at 21%—the highest in the 21st century. Its super-hawkish stance may finally be yielding results. High rates encourage capital inflow into the ruble, making imports cheaper. Russians' inflation expectations over the next 12 months are falling from a recent peak of about 14% to around 13%. High-frequency data suggests that inflation is gradually decreasing.

Instead of spending money, Russians are placing it in savings accounts. High rates further discourage capital investments. If that were the whole story, perhaps Putin would remain satisfied. For the Russian government, a small, gradual slowdown might be a price worth paying if it means taming inflation.

The problem is that the slowdown is neither gradual nor small. This is occurring because, in recent weeks, a third factor has started to dominate all others—external conditions have deteriorated. As the U.S. trade war escalates, global growth forecasts have fallen, and oil prices have followed suit.


Falling oil prices a disaster for Russia​

Economists are particularly concerned about the situation in China—Russia's largest oil buyer. The International Monetary Fund has lowered its expectations for China’s GDP growth in 2025 from 4.6% to 4%. Falling oil prices are causing numerous problems in Russia. They have hit the stock market, where oil companies account for a quarter of the capitalization. The Micex Index, which tracks the stock prices of over 50 major listed companies, has fallen by one-tenth from the last peak.

As export revenues decline, falling oil prices directly affect the real economy. The Russian budget is already feeling the effects—in March, tax revenues from oil and gas fell by 17% compared to the previous year. On April 22, Reuters reported, citing official documents, that the government expects a sharp drop in oil and gas sales this year.


Germany also suffers. they lost hundreds of billions of euros due to crises​

Losses are also visible on the other side of the political barricade. According to the German Economic Institute (IW) in Cologne, over the past three years, the German economy has not managed to exceed the level of 2019 after an initial post-pandemic recovery. Without pandemic-related losses and subsequent crises, German GDP would be about 735 billion euros higher.

The most serious crisis since German reunification​

Michael Grömling, Chief Economist at the IW, emphasizes the gravity of the current situation, describing it as the most severe economic downturn Germany has faced since reunification. He attributes this deep crisis to the combined effects of the COVID-19 pandemic and the war in Ukraine, which have effectively brought business investments to a standstill, thereby constraining the country's production capacity in the foreseeable future.


The total economic losses due to reduced private consumption over the past five years are estimated to be over 470 billion euros. This translates to about 6,000 dollars per German resident.

Grömling also highlights a notable change in the pattern of economic losses. He explains that during the pandemic's peak, the decline in consumer spending was the primary driver of economic damage. However, in more recent years, the growing impact has come from a significant shortfall in investment, which has become the dominant source of financial strain.
The Micex Index, which tracks the stock prices of over 50 major listed companies, has fallen by one-tenth from the last peak.

Meh...we were down 20% and have negative GDP growth. Maybe we should take notes on how to run an economy.
 
Intelligence suggests Putin’s immediate goals for Ukraine war may have shifted

New intelligence reviewed by US and Western officials suggests Russian President Vladimir Putin may have shifted his immediate focus in the Ukraine war toward the shorter-term objectives of solidifying his hold on territory his forces have seized and boosting his country’s struggling economy, multiple people familiar with the matter told CNN.

This represents an evolution from recent US and Western intelligence assessments suggesting that Putin felt the state of the war was to his advantage, that he had the momentum as well as the manpower to sustain a longer fight against a faltering Ukraine and seize the entire country.

The perception Putin may have shifted his thinking has played into President Donald Trump and his negotiators’ belief that the Russian president may be more willing to consider a potential peace deal than in the past, two US sources familiar with the matter told CNN.

However, senior US officials remain skeptical of Putin and his repeated assertions in ongoing talks that he wants a peace deal, even though what is being proposed by the US is incredibly generous to Russia, handing them most of the territory they’ve taken. There is also a widespread belief that even if Russia agrees to a version of the agreement on the table it may look to resume the war and try to seize more of Ukraine in the long-term.

“I think that he may be thinking - I don’t want to say thinking smaller - but thinking about what a reasonable nearer-term objective is,” said a senior western intelligence official.

Russian Offensive Campaign Assessment, May 2, 2025

Russian forces are currently sustaining a higher casualty rate per square kilometer gained than in Fall 2024. Russian forces gained an estimated 2,949 square kilometers at the cost of 174,935 casualties between September and December 2024 — an average of 59 casualties per square kilometer taken. Russian casualty rates consistently increased throughout September, October, November, and December 2024 and peaked at an estimated 49,135 total monthly casualties in December 2024. Monthly Russian rates of advance plateaued at 839 square kilometers in November 2024, however, and began to slow in December 2024 to an assessed 593 square kilometers and have continued to slow in 2025 (with the exception of the elimination of the Kursk salient). Russian gains have been 45 percent slower between January and April 2025 than in the period between September and December 2024, although Russian casualty rates have only decreased by 10 percent in that interval. The Russian military command thus appears to be tolerating similar personnel loss rates despite a significant decrease in the rate of territorial gains.

Russia has thus far sustained these casualties and the current tempo of offensive operations by rapidly deploying low quality troops to frontline units, although the reliance on such troops is also hindering Russia's ability to conduct complex operations and make rapid advances in Ukraine. ISW has not observed a notable decrease in the tempo of Russian offensive operations along the frontline in recent months, despite the slowing rates of advance, suggesting that Russia is generating enough forces to sustain these casualties without having to deprioritize any frontline area. ISW has repeatedly observed reports that new Russian recruits only receive a month of training before deploying to Ukraine, and this limited training is likely constraining recruits' combat capabilities and the Russian military's overall capacity to successfully conduct complex operations. The Russian military command is currently prioritizing funneling poorly trained recruits into highly attritional infantry assaults to offset personnel losses in Ukraine while sustaining the current tempo of operations, possibly at the expense of Russia's long-term warfighting capabilities. The Russian military does not have a reserve pool of well-trained troops who are not currently engaged in combat in Ukraine and can rapidly deploy along the frontline, and the Russian military command's decision to funnel poorly trained troops to the frontline in Ukraine is undermining Russia's ability to create a pool of such forces.

This is because of oil prices. With Brent Sea price around 60 per barrel. Ural price is like 50. Russia’s budget/army need 70 dollar oil to keep economy afloat and army funded. They want a pause now but it will only be a pause.
 

Russia's economic miracle fades as growth grinds to a halt​


After years of unexpected resilience, the Russian economy is showing clear signs of slowing down. Indicators suggest that the annual growth rate has dropped from 5% to nearly 0%. High inflation has prompted the central bank to keep interest rates at 21%, and global trade tensions are further weakening Russian markets, which rely on the export of raw materials.
Sergey Lavrov, Russia's Foreign Minister, recently told the American network CBS that Russia has become immune to Western sanctions because it has "restructured the economy to be self-sufficient." These assurances contradict the analysis conducted by "The Economist."

The weekly publication suggests that the first symptoms of economic slowdown are visible nationwide, from Kaliningrad to Vladivostok. Evidence for this includes data from Goldman Sachs, which suggests that since the end of last year, Russia’s annual economic growth rate has fallen from about 5% to nearly zero. Similar trends are shown by the monthly growth estimates prepared by the Russian Development Bank VEB. Sberbank, Russia's largest lender, also reports a downward trend in high-frequency business turnover.

Although the Russian government is more reserved in its comments, it admits that the situation has changed. At the beginning of April, the Russian central bank reported that declines in production had been recently registered in many sectors, driven by rapidly falling demand.

The end of the economic miracle​

Over the last three years, signals from beyond Poland’s eastern border have been much more troubling. Despite sanctions and wartime expenditures, Russia’s economy exceeded almost all forecasts. This was due to a combination of fiscal expansion, high commodity prices, and the militarization of the economy. After the full-scale invasion of Ukraine in 2022, economists predicted a drop in Russia's annual GDP of up to 15%. In reality, the rate fell by only 1.4%, then increased by 4.1% in 2023 and 4.3% in 2024. Consumer confidence approached record-high levels.

As it seemed that Donald Trump, the President of the United States, might give Vladimir Putin what he wants to end the war in Ukraine, some analysts predicted Russia’s economy would accelerate even more in 2025. Current data points to a completely different scenario.
What is behind the sudden slowdown? Three reasons seem most likely. The first is what Russia's central bank euphemistically calls the "structural transformation" of the economy. Previously oriented towards the West and accepting private enterprise (with some restrictions), Russia has since 2022 shifted to a wartime economy oriented towards the East.

This transformation required massive investments, not only in arms and ammunition factories but also in new supply chains to increase trade with China and India, as well as to boost domestic production. By mid-2024, real capital expenditures were 23% higher than at the end of 2021.

According to the central bank, this adaptation is now complete. Military spending follows a similar pattern. Julian Cooper from the Stockholm International Peace Research Institute (SIPRI) estimates that this year, military expenditures will rise by only 3.4% in real terms, a drastic slowdown compared to the 53% increase last year. Weaker spending on "structural transformation" means slower growth.

Inflation and interest rates slow the economy​

The second factor is monetary policy. Inflation in Russia has been above the central bank’s target of 4% annually for months, even exceeding 10% in February and March. This is due not only to the growing pace of military spending but also to a labor shortage caused by conscription and the emigration of skilled workers. Last year, nominal wages in Russia rose by 18%, forcing companies to raise prices. In response, the central bank tightened control.


On April 25, the Russian central bank decided to keep the benchmark interest rate at 21%—the highest in the 21st century. Its super-hawkish stance may finally be yielding results. High rates encourage capital inflow into the ruble, making imports cheaper. Russians' inflation expectations over the next 12 months are falling from a recent peak of about 14% to around 13%. High-frequency data suggests that inflation is gradually decreasing.

Instead of spending money, Russians are placing it in savings accounts. High rates further discourage capital investments. If that were the whole story, perhaps Putin would remain satisfied. For the Russian government, a small, gradual slowdown might be a price worth paying if it means taming inflation.

The problem is that the slowdown is neither gradual nor small. This is occurring because, in recent weeks, a third factor has started to dominate all others—external conditions have deteriorated. As the U.S. trade war escalates, global growth forecasts have fallen, and oil prices have followed suit.


Falling oil prices a disaster for Russia​

Economists are particularly concerned about the situation in China—Russia's largest oil buyer. The International Monetary Fund has lowered its expectations for China’s GDP growth in 2025 from 4.6% to 4%. Falling oil prices are causing numerous problems in Russia. They have hit the stock market, where oil companies account for a quarter of the capitalization. The Micex Index, which tracks the stock prices of over 50 major listed companies, has fallen by one-tenth from the last peak.

As export revenues decline, falling oil prices directly affect the real economy. The Russian budget is already feeling the effects—in March, tax revenues from oil and gas fell by 17% compared to the previous year. On April 22, Reuters reported, citing official documents, that the government expects a sharp drop in oil and gas sales this year.


Germany also suffers. they lost hundreds of billions of euros due to crises​

Losses are also visible on the other side of the political barricade. According to the German Economic Institute (IW) in Cologne, over the past three years, the German economy has not managed to exceed the level of 2019 after an initial post-pandemic recovery. Without pandemic-related losses and subsequent crises, German GDP would be about 735 billion euros higher.

The most serious crisis since German reunification​

Michael Grömling, Chief Economist at the IW, emphasizes the gravity of the current situation, describing it as the most severe economic downturn Germany has faced since reunification. He attributes this deep crisis to the combined effects of the COVID-19 pandemic and the war in Ukraine, which have effectively brought business investments to a standstill, thereby constraining the country's production capacity in the foreseeable future.


The total economic losses due to reduced private consumption over the past five years are estimated to be over 470 billion euros. This translates to about 6,000 dollars per German resident.

Grömling also highlights a notable change in the pattern of economic losses. He explains that during the pandemic's peak, the decline in consumer spending was the primary driver of economic damage. However, in more recent years, the growing impact has come from a significant shortfall in investment, which has become the dominant source of financial strain.
The Micex Index, which tracks the stock prices of over 50 major listed companies, has fallen by one-tenth from the last peak.

Meh...we were down 20% and have negative GDP growth. Maybe we should take notes on how to run an economy.
Again... does not help this thread at all. Keep it to yourself.

The Russian economy has punted it's woes down the field. They gained the field position for now but they are in defense now with their economy and you can't move the ball in your favor that way. Sooner or later the other team scores and that will happen. It is all about energy prices... they go low, Russia is done for economically.
 

Russia's economic miracle fades as growth grinds to a halt​


After years of unexpected resilience, the Russian economy is showing clear signs of slowing down. Indicators suggest that the annual growth rate has dropped from 5% to nearly 0%. High inflation has prompted the central bank to keep interest rates at 21%, and global trade tensions are further weakening Russian markets, which rely on the export of raw materials.
Sergey Lavrov, Russia's Foreign Minister, recently told the American network CBS that Russia has become immune to Western sanctions because it has "restructured the economy to be self-sufficient." These assurances contradict the analysis conducted by "The Economist."

The weekly publication suggests that the first symptoms of economic slowdown are visible nationwide, from Kaliningrad to Vladivostok. Evidence for this includes data from Goldman Sachs, which suggests that since the end of last year, Russia’s annual economic growth rate has fallen from about 5% to nearly zero. Similar trends are shown by the monthly growth estimates prepared by the Russian Development Bank VEB. Sberbank, Russia's largest lender, also reports a downward trend in high-frequency business turnover.

Although the Russian government is more reserved in its comments, it admits that the situation has changed. At the beginning of April, the Russian central bank reported that declines in production had been recently registered in many sectors, driven by rapidly falling demand.

The end of the economic miracle​

Over the last three years, signals from beyond Poland’s eastern border have been much more troubling. Despite sanctions and wartime expenditures, Russia’s economy exceeded almost all forecasts. This was due to a combination of fiscal expansion, high commodity prices, and the militarization of the economy. After the full-scale invasion of Ukraine in 2022, economists predicted a drop in Russia's annual GDP of up to 15%. In reality, the rate fell by only 1.4%, then increased by 4.1% in 2023 and 4.3% in 2024. Consumer confidence approached record-high levels.

As it seemed that Donald Trump, the President of the United States, might give Vladimir Putin what he wants to end the war in Ukraine, some analysts predicted Russia’s economy would accelerate even more in 2025. Current data points to a completely different scenario.
What is behind the sudden slowdown? Three reasons seem most likely. The first is what Russia's central bank euphemistically calls the "structural transformation" of the economy. Previously oriented towards the West and accepting private enterprise (with some restrictions), Russia has since 2022 shifted to a wartime economy oriented towards the East.

This transformation required massive investments, not only in arms and ammunition factories but also in new supply chains to increase trade with China and India, as well as to boost domestic production. By mid-2024, real capital expenditures were 23% higher than at the end of 2021.

According to the central bank, this adaptation is now complete. Military spending follows a similar pattern. Julian Cooper from the Stockholm International Peace Research Institute (SIPRI) estimates that this year, military expenditures will rise by only 3.4% in real terms, a drastic slowdown compared to the 53% increase last year. Weaker spending on "structural transformation" means slower growth.

Inflation and interest rates slow the economy​

The second factor is monetary policy. Inflation in Russia has been above the central bank’s target of 4% annually for months, even exceeding 10% in February and March. This is due not only to the growing pace of military spending but also to a labor shortage caused by conscription and the emigration of skilled workers. Last year, nominal wages in Russia rose by 18%, forcing companies to raise prices. In response, the central bank tightened control.


On April 25, the Russian central bank decided to keep the benchmark interest rate at 21%—the highest in the 21st century. Its super-hawkish stance may finally be yielding results. High rates encourage capital inflow into the ruble, making imports cheaper. Russians' inflation expectations over the next 12 months are falling from a recent peak of about 14% to around 13%. High-frequency data suggests that inflation is gradually decreasing.

Instead of spending money, Russians are placing it in savings accounts. High rates further discourage capital investments. If that were the whole story, perhaps Putin would remain satisfied. For the Russian government, a small, gradual slowdown might be a price worth paying if it means taming inflation.

The problem is that the slowdown is neither gradual nor small. This is occurring because, in recent weeks, a third factor has started to dominate all others—external conditions have deteriorated. As the U.S. trade war escalates, global growth forecasts have fallen, and oil prices have followed suit.


Falling oil prices a disaster for Russia​

Economists are particularly concerned about the situation in China—Russia's largest oil buyer. The International Monetary Fund has lowered its expectations for China’s GDP growth in 2025 from 4.6% to 4%. Falling oil prices are causing numerous problems in Russia. They have hit the stock market, where oil companies account for a quarter of the capitalization. The Micex Index, which tracks the stock prices of over 50 major listed companies, has fallen by one-tenth from the last peak.

As export revenues decline, falling oil prices directly affect the real economy. The Russian budget is already feeling the effects—in March, tax revenues from oil and gas fell by 17% compared to the previous year. On April 22, Reuters reported, citing official documents, that the government expects a sharp drop in oil and gas sales this year.


Germany also suffers. they lost hundreds of billions of euros due to crises​

Losses are also visible on the other side of the political barricade. According to the German Economic Institute (IW) in Cologne, over the past three years, the German economy has not managed to exceed the level of 2019 after an initial post-pandemic recovery. Without pandemic-related losses and subsequent crises, German GDP would be about 735 billion euros higher.

The most serious crisis since German reunification​

Michael Grömling, Chief Economist at the IW, emphasizes the gravity of the current situation, describing it as the most severe economic downturn Germany has faced since reunification. He attributes this deep crisis to the combined effects of the COVID-19 pandemic and the war in Ukraine, which have effectively brought business investments to a standstill, thereby constraining the country's production capacity in the foreseeable future.


The total economic losses due to reduced private consumption over the past five years are estimated to be over 470 billion euros. This translates to about 6,000 dollars per German resident.

Grömling also highlights a notable change in the pattern of economic losses. He explains that during the pandemic's peak, the decline in consumer spending was the primary driver of economic damage. However, in more recent years, the growing impact has come from a significant shortfall in investment, which has become the dominant source of financial strain.
The Micex Index, which tracks the stock prices of over 50 major listed companies, has fallen by one-tenth from the last peak.

Meh...we were down 20% and have negative GDP growth. Maybe we should take notes on how to run an economy.
Again... does not help this thread at all. Keep it to yourself.

The Russian economy has punted it's woes down the field. They gained the field position for now but they are in defense now with their economy and you can't move the ball in your favor that way. Sooner or later the other team scores and that will happen. It is all about energy prices... they go low, Russia is done for economically.

my $.0002, as long as price of gas/oil are not bottoming out and countries buy it from Russia, their economy isn't going to crash.

i don't see opec, or USA for that matter, wanting energy prices to crash.
 
Video: https://x.com/Osinttechnical/status/1918693595726442668

New onboard footage from Ukraine’s intelligence service confirms that the Ukrainian SAM USV did not shoot down a Russian helicopter.

It splashed a $50 million Russian Naval Aviation Su-30SM fighter bomber, the first ever shootdown of a combat aircraft by a sea drone.
Also what appears to be the first look at Ukraine’s updated SAM USV targeting system.

High resolution thermal imaging system with air tracking capabilities, and also what appears to be some form of AI-computed engagement data, giving live target speed and heading.


The US State Department has approved a possible Foreign Military Sale to Ukraine of equipment and services in support of its F-16 aircraft, including aircraft modifications and upgrades, for an estimated cost of $310.5 million.

"This proposed sale will support the foreign policy goals and national security objectives of the United States by improving the security of a partner country that is a force for political stability and economic progress in Europe.

The description and dollar value are for the highest estimated quantity and dollar value based on initial requirements. Actual dollar value will be lower depending on final requirements, budget authority, and signed sales agreement(s), if and when concluded."

Second Russian military aircraft destroyed within 24 hours, Zelensky says

President Volodymyr Zelensky said on May 3 that Ukraine's military destroyed a second Russian military aircraft within a 24-hour time period, having struck a military airfield in occupied Crimea.

Russia worries about a U.S. tilt toward Ukraine after minerals deal

A Russian official said pressure was now growing on Putin to at least appear to make further concessions. “He understands that he needs to be more cooperative,” the official said, speaking on the condition of anonymity to discuss sensitive matters. “Otherwise, the bill forwarded by Graham would be a serious blow because the government has already announced that the budget deficit is growing.”
Economic concerns are at the center of a deepening rift in the Russian elite over negotiation tactics. The more dovish side is pressing the Kremlin to accept a possible U.S. deal in which the conflict would be frozen at the front line in return for a partial lifting of sanctions and U.S. recognition of Russian control over Crimea. Hawks are pressing for Russia to continue its war regardless of the economy.
The Russian official said economic considerations are playing an increasing role because “it is impossible to build the economy completely on a mobilization model.” Sanctions and Russia’s wartime spending spree have led to spiraling inflation — officially at nearly 10 percent — while consumer price increases are nearly double that rate.

Central bank efforts to combat inflation with sky-high interest rates of 21 percent have failed to rein in price increases and have instead led to increasing nonpayments in the Russian economy and across the banking system. This week, Russia’s biggest bank, Sberbank, reported that the number of problem loans had grown sharply in the first quarter of 2025, with overdue consumer loans at 16.1 percent of that portfolio.
“All the banks are not in the best of conditions,” the official said. “If we speak about the level of debt among the population, if we speak about inflation and if we speak about the fall in living standards, all this is happening.”
The debate in the government, said the official, is between those who see the worsening economy as a reason to forge better ties with the U.S. and those who think Russia should seize more Ukrainian territory while it has the military advantage and Europe struggles to fill in for a reluctant America.

In the Pokrovsky direction, the Russian army is pressing from three sides — OSUV "Khortytsia"

At Pokrovsk direction Russian troops are trying to advance in the southern part near the village of Bogatyr, towards the highway to Kostiantynivka and resumed their advance west of the city of Pokrovsk.

At Pokrovsk direction Russian troops are trying to advance in the southern part near the village of Bogatyr, towards the highway to Kostiantynivka and resumed their advance west of the city of Pokrovsk.
This was announced on May 2 on the air of "Suspilne. Studio" was told by Viktor Tregubov, spokesman for the Khortytsia OSUV.

According to him, the village of Bogatyr is simultaneously in the reports of the General Staff of the Armed Forces of Ukraine in the Pokrovsk and Novopavlivka directions, where the Russian army is exerting pressure.

"On the one hand, the Russians are actively trying to push towards the Pokrovsk-Kostiantynivka highway, resumed activity, again try to restore the tactical position west of the city, and push it to the south and west. Therefore, the village of Bogatyr appears simultaneously in the reports in two directions — on Pokrovske and Novopavlovskoye, because it is attacked from both sides. They are helping the Novopavlivka group to go west and approach the borders of the Dnipropetrovsk region, although, again, without much success."
 

my $.0002, as long as price of gas/oil are not bottoming out and countries buy it from Russia, their economy isn't going to crash.

i don't see opec, or USA for that matter, wanting energy prices to crash.
Yes and no. The prices of energy do not need to crash to crash the Russian economy. They just need to be on the lower side. There is a tipping point for sure. Russia's economy is not healthy right now. Russia GDP growth is estimated to be 1.3-1.5%, Russia says it is 1.8%.

US inflation since 2021:
  • 2021: 7.0%
  • 2022: 9.1% (peak)
  • 2023: 3.4%
  • 2024: 2.9%
  • 2025 (so far): 2.4% (as of March)
Russian inflation since 2021:
  • 2021: 8.42%
  • 2022: 11.92%
  • 2023: 7.42%
  • 2024: 9.51%
  • 2025 (so far, average through March): 9.91%
We lived that inflation for one year and it has been rough on us. The Russians have been going through this for the 5th year.

Russian interest rates have been kept at 21%, making the cost of capital about 30% while profit margins for most businesses is 20%.

The Ruble has lost half of it's value against the Dollar and Euro.

40% of the Russian budget is spent on defense/security spending. This and energy has been the only thing keeping the Russian economy going.

Budget calculations were revised down to $56/barrel, reducing oil and gas revenues to 8.3 trillion rubles (3.7% of GDP), down from 5.1% in 2024.

The Russian economy as is is not sustainable. The moves that Russia has made has bought them time and that is it. At some point the bill becomes due. There is severe labor shortages and a severly declining demographics which were on the downward trend before the war which took manpower to the war and mass immigration of those fleeing before they would be drafted.
 

Pentagon shifts focus to drones, retires legacy helicopters

Pentagon Chief Pete Hegseth has announced a radical transformation of the U.S. ground forces, which involves moving away from outdated systems and focusing on unmanned systems at the expense of helicopters, as reported by the Breaking Defense portal on Thursday. Older versions of Apache helicopters are set to be phased out.

In an internal memorandum published by the Breaking Defense portal, Hegseth stated that the changes to the largest branch of the U.S. armed forces aim to create "leaner, more lethal force." To achieve this, the military must "transform at an accelerated pace by divesting outdated, redundant, and inefficient programs, as well as restructuring headquarters and acquisition systems."

Hegseth has ordered a series of modernization measures, including outfitting all military divisions with unmanned systems to enable AI-driven command and control capabilities. Another key initiative involves expanding the use of 3D printers for on-site equipment production, ensuring that units can manufacture necessary gear independently. Additionally, Hegseth advocates for halting the procurement of outdated platforms, such as surplus HMMWV vehicles, aging Grey Eagle drones, and legacy helicopters.

They want to increase the role of drones​

The Pentagon Chief is calling for a reorganization of assault helicopter units by integrating them with cost-effective drone swarms designed to overwhelm adversaries on the battlefield. According to Alex Miller, the chief technology officer on the U.S. Army command staff, this involves phasing out older versions of AH-64D Apache helicopters. As Breaking Defense notes, it is unclear whether these will be replaced with the latest AH-64E version.

U.S. Army Commander Gen. Randy George, as quoted by the portal, mentioned that retiring older helicopters would increase operational readiness due to the high cost of maintaining the AH-64D.

The U.S. will also cease further purchases of Humvee (HMMWV) and JLTV vehicles. Additionally, they will not procure the newly developed M10 Booker light tanks, the first units of which were delivered to the Army last year.
Obviously a shift as a direct result of (mostly) the war in Ukraine. Drones will be a major focus for the US on air, land and sea.
 

Russia's economic miracle fades as growth grinds to a halt​


After years of unexpected resilience, the Russian economy is showing clear signs of slowing down. Indicators suggest that the annual growth rate has dropped from 5% to nearly 0%. High inflation has prompted the central bank to keep interest rates at 21%, and global trade tensions are further weakening Russian markets, which rely on the export of raw materials.
Sergey Lavrov, Russia's Foreign Minister, recently told the American network CBS that Russia has become immune to Western sanctions because it has "restructured the economy to be self-sufficient." These assurances contradict the analysis conducted by "The Economist."

The weekly publication suggests that the first symptoms of economic slowdown are visible nationwide, from Kaliningrad to Vladivostok. Evidence for this includes data from Goldman Sachs, which suggests that since the end of last year, Russia’s annual economic growth rate has fallen from about 5% to nearly zero. Similar trends are shown by the monthly growth estimates prepared by the Russian Development Bank VEB. Sberbank, Russia's largest lender, also reports a downward trend in high-frequency business turnover.

Although the Russian government is more reserved in its comments, it admits that the situation has changed. At the beginning of April, the Russian central bank reported that declines in production had been recently registered in many sectors, driven by rapidly falling demand.

The end of the economic miracle​

Over the last three years, signals from beyond Poland’s eastern border have been much more troubling. Despite sanctions and wartime expenditures, Russia’s economy exceeded almost all forecasts. This was due to a combination of fiscal expansion, high commodity prices, and the militarization of the economy. After the full-scale invasion of Ukraine in 2022, economists predicted a drop in Russia's annual GDP of up to 15%. In reality, the rate fell by only 1.4%, then increased by 4.1% in 2023 and 4.3% in 2024. Consumer confidence approached record-high levels.

As it seemed that Donald Trump, the President of the United States, might give Vladimir Putin what he wants to end the war in Ukraine, some analysts predicted Russia’s economy would accelerate even more in 2025. Current data points to a completely different scenario.
What is behind the sudden slowdown? Three reasons seem most likely. The first is what Russia's central bank euphemistically calls the "structural transformation" of the economy. Previously oriented towards the West and accepting private enterprise (with some restrictions), Russia has since 2022 shifted to a wartime economy oriented towards the East.

This transformation required massive investments, not only in arms and ammunition factories but also in new supply chains to increase trade with China and India, as well as to boost domestic production. By mid-2024, real capital expenditures were 23% higher than at the end of 2021.

According to the central bank, this adaptation is now complete. Military spending follows a similar pattern. Julian Cooper from the Stockholm International Peace Research Institute (SIPRI) estimates that this year, military expenditures will rise by only 3.4% in real terms, a drastic slowdown compared to the 53% increase last year. Weaker spending on "structural transformation" means slower growth.

Inflation and interest rates slow the economy​

The second factor is monetary policy. Inflation in Russia has been above the central bank’s target of 4% annually for months, even exceeding 10% in February and March. This is due not only to the growing pace of military spending but also to a labor shortage caused by conscription and the emigration of skilled workers. Last year, nominal wages in Russia rose by 18%, forcing companies to raise prices. In response, the central bank tightened control.


On April 25, the Russian central bank decided to keep the benchmark interest rate at 21%—the highest in the 21st century. Its super-hawkish stance may finally be yielding results. High rates encourage capital inflow into the ruble, making imports cheaper. Russians' inflation expectations over the next 12 months are falling from a recent peak of about 14% to around 13%. High-frequency data suggests that inflation is gradually decreasing.

Instead of spending money, Russians are placing it in savings accounts. High rates further discourage capital investments. If that were the whole story, perhaps Putin would remain satisfied. For the Russian government, a small, gradual slowdown might be a price worth paying if it means taming inflation.

The problem is that the slowdown is neither gradual nor small. This is occurring because, in recent weeks, a third factor has started to dominate all others—external conditions have deteriorated. As the U.S. trade war escalates, global growth forecasts have fallen, and oil prices have followed suit.


Falling oil prices a disaster for Russia​

Economists are particularly concerned about the situation in China—Russia's largest oil buyer. The International Monetary Fund has lowered its expectations for China’s GDP growth in 2025 from 4.6% to 4%. Falling oil prices are causing numerous problems in Russia. They have hit the stock market, where oil companies account for a quarter of the capitalization. The Micex Index, which tracks the stock prices of over 50 major listed companies, has fallen by one-tenth from the last peak.

As export revenues decline, falling oil prices directly affect the real economy. The Russian budget is already feeling the effects—in March, tax revenues from oil and gas fell by 17% compared to the previous year. On April 22, Reuters reported, citing official documents, that the government expects a sharp drop in oil and gas sales this year.


Germany also suffers. they lost hundreds of billions of euros due to crises​

Losses are also visible on the other side of the political barricade. According to the German Economic Institute (IW) in Cologne, over the past three years, the German economy has not managed to exceed the level of 2019 after an initial post-pandemic recovery. Without pandemic-related losses and subsequent crises, German GDP would be about 735 billion euros higher.

The most serious crisis since German reunification​

Michael Grömling, Chief Economist at the IW, emphasizes the gravity of the current situation, describing it as the most severe economic downturn Germany has faced since reunification. He attributes this deep crisis to the combined effects of the COVID-19 pandemic and the war in Ukraine, which have effectively brought business investments to a standstill, thereby constraining the country's production capacity in the foreseeable future.


The total economic losses due to reduced private consumption over the past five years are estimated to be over 470 billion euros. This translates to about 6,000 dollars per German resident.

Grömling also highlights a notable change in the pattern of economic losses. He explains that during the pandemic's peak, the decline in consumer spending was the primary driver of economic damage. However, in more recent years, the growing impact has come from a significant shortfall in investment, which has become the dominant source of financial strain.
The Micex Index, which tracks the stock prices of over 50 major listed companies, has fallen by one-tenth from the last peak.

Meh...we were down 20% and have negative GDP growth. Maybe we should take notes on how to run an economy.
Again... does not help this thread at all. Keep it to yourself.

The Russian economy has punted it's woes down the field. They gained the field position for now but they are in defense now with their economy and you can't move the ball in your favor that way. Sooner or later the other team scores and that will happen. It is all about energy prices... they go low, Russia is done for economically.
It's not a political statement, it's a fact. A 10% market drop from the highs is nothing. The author putting that in the article loses all credibility. The Nikkei is down 13% from it's high right now and was down 26%. To have a positive GDP in war time with all the sanctions is amazing. Russia has done an excellent job managing it's economy. At least good enough to keep war favorability polls steady.
 

my $.0002, as long as price of gas/oil are not bottoming out and countries buy it from Russia, their economy isn't going to crash.

i don't see opec, or USA for that matter, wanting energy prices to crash.
Yes and no. The prices of energy do not need to crash to crash the Russian economy. They just need to be on the lower side. There is a tipping point for sure. Russia's economy is not healthy right now. Russia GDP growth is estimated to be 1.3-1.5%, Russia says it is 1.8%.

US inflation since 2021:
  • 2021: 7.0%
  • 2022: 9.1% (peak)
  • 2023: 3.4%
  • 2024: 2.9%
  • 2025 (so far): 2.4% (as of March)
Russian inflation since 2021:
  • 2021: 8.42%
  • 2022: 11.92%
  • 2023: 7.42%
  • 2024: 9.51%
  • 2025 (so far, average through March): 9.91%
We lived that inflation for one year and it has been rough on us. The Russians have been going through this for the 5th year.

Russian interest rates have been kept at 21%, making the cost of capital about 30% while profit margins for most businesses is 20%.

The Ruble has lost half of it's value against the Dollar and Euro.

40% of the Russian budget is spent on defense/security spending. This and energy has been the only thing keeping the Russian economy going.

Budget calculations were revised down to $56/barrel, reducing oil and gas revenues to 8.3 trillion rubles (3.7% of GDP), down from 5.1% in 2024.

The Russian economy as is is not sustainable. The moves that Russia has made has bought them time and that is it. At some point the bill becomes due. There is severe labor shortages and a severly declining demographics which were on the downward trend before the war which took manpower to the war and mass immigration of those fleeing before they would be drafted.
i think the economic worries are over stated. they've proven resilient for decades. hell centuries. it's part of their identity.
 

Russia's economic miracle fades as growth grinds to a halt​


After years of unexpected resilience, the Russian economy is showing clear signs of slowing down. Indicators suggest that the annual growth rate has dropped from 5% to nearly 0%. High inflation has prompted the central bank to keep interest rates at 21%, and global trade tensions are further weakening Russian markets, which rely on the export of raw materials.
Sergey Lavrov, Russia's Foreign Minister, recently told the American network CBS that Russia has become immune to Western sanctions because it has "restructured the economy to be self-sufficient." These assurances contradict the analysis conducted by "The Economist."

The weekly publication suggests that the first symptoms of economic slowdown are visible nationwide, from Kaliningrad to Vladivostok. Evidence for this includes data from Goldman Sachs, which suggests that since the end of last year, Russia’s annual economic growth rate has fallen from about 5% to nearly zero. Similar trends are shown by the monthly growth estimates prepared by the Russian Development Bank VEB. Sberbank, Russia's largest lender, also reports a downward trend in high-frequency business turnover.

Although the Russian government is more reserved in its comments, it admits that the situation has changed. At the beginning of April, the Russian central bank reported that declines in production had been recently registered in many sectors, driven by rapidly falling demand.

The end of the economic miracle​

Over the last three years, signals from beyond Poland’s eastern border have been much more troubling. Despite sanctions and wartime expenditures, Russia’s economy exceeded almost all forecasts. This was due to a combination of fiscal expansion, high commodity prices, and the militarization of the economy. After the full-scale invasion of Ukraine in 2022, economists predicted a drop in Russia's annual GDP of up to 15%. In reality, the rate fell by only 1.4%, then increased by 4.1% in 2023 and 4.3% in 2024. Consumer confidence approached record-high levels.

As it seemed that Donald Trump, the President of the United States, might give Vladimir Putin what he wants to end the war in Ukraine, some analysts predicted Russia’s economy would accelerate even more in 2025. Current data points to a completely different scenario.
What is behind the sudden slowdown? Three reasons seem most likely. The first is what Russia's central bank euphemistically calls the "structural transformation" of the economy. Previously oriented towards the West and accepting private enterprise (with some restrictions), Russia has since 2022 shifted to a wartime economy oriented towards the East.

This transformation required massive investments, not only in arms and ammunition factories but also in new supply chains to increase trade with China and India, as well as to boost domestic production. By mid-2024, real capital expenditures were 23% higher than at the end of 2021.

According to the central bank, this adaptation is now complete. Military spending follows a similar pattern. Julian Cooper from the Stockholm International Peace Research Institute (SIPRI) estimates that this year, military expenditures will rise by only 3.4% in real terms, a drastic slowdown compared to the 53% increase last year. Weaker spending on "structural transformation" means slower growth.

Inflation and interest rates slow the economy​

The second factor is monetary policy. Inflation in Russia has been above the central bank’s target of 4% annually for months, even exceeding 10% in February and March. This is due not only to the growing pace of military spending but also to a labor shortage caused by conscription and the emigration of skilled workers. Last year, nominal wages in Russia rose by 18%, forcing companies to raise prices. In response, the central bank tightened control.


On April 25, the Russian central bank decided to keep the benchmark interest rate at 21%—the highest in the 21st century. Its super-hawkish stance may finally be yielding results. High rates encourage capital inflow into the ruble, making imports cheaper. Russians' inflation expectations over the next 12 months are falling from a recent peak of about 14% to around 13%. High-frequency data suggests that inflation is gradually decreasing.

Instead of spending money, Russians are placing it in savings accounts. High rates further discourage capital investments. If that were the whole story, perhaps Putin would remain satisfied. For the Russian government, a small, gradual slowdown might be a price worth paying if it means taming inflation.

The problem is that the slowdown is neither gradual nor small. This is occurring because, in recent weeks, a third factor has started to dominate all others—external conditions have deteriorated. As the U.S. trade war escalates, global growth forecasts have fallen, and oil prices have followed suit.


Falling oil prices a disaster for Russia​

Economists are particularly concerned about the situation in China—Russia's largest oil buyer. The International Monetary Fund has lowered its expectations for China’s GDP growth in 2025 from 4.6% to 4%. Falling oil prices are causing numerous problems in Russia. They have hit the stock market, where oil companies account for a quarter of the capitalization. The Micex Index, which tracks the stock prices of over 50 major listed companies, has fallen by one-tenth from the last peak.

As export revenues decline, falling oil prices directly affect the real economy. The Russian budget is already feeling the effects—in March, tax revenues from oil and gas fell by 17% compared to the previous year. On April 22, Reuters reported, citing official documents, that the government expects a sharp drop in oil and gas sales this year.


Germany also suffers. they lost hundreds of billions of euros due to crises​

Losses are also visible on the other side of the political barricade. According to the German Economic Institute (IW) in Cologne, over the past three years, the German economy has not managed to exceed the level of 2019 after an initial post-pandemic recovery. Without pandemic-related losses and subsequent crises, German GDP would be about 735 billion euros higher.

The most serious crisis since German reunification​

Michael Grömling, Chief Economist at the IW, emphasizes the gravity of the current situation, describing it as the most severe economic downturn Germany has faced since reunification. He attributes this deep crisis to the combined effects of the COVID-19 pandemic and the war in Ukraine, which have effectively brought business investments to a standstill, thereby constraining the country's production capacity in the foreseeable future.


The total economic losses due to reduced private consumption over the past five years are estimated to be over 470 billion euros. This translates to about 6,000 dollars per German resident.

Grömling also highlights a notable change in the pattern of economic losses. He explains that during the pandemic's peak, the decline in consumer spending was the primary driver of economic damage. However, in more recent years, the growing impact has come from a significant shortfall in investment, which has become the dominant source of financial strain.
The Micex Index, which tracks the stock prices of over 50 major listed companies, has fallen by one-tenth from the last peak.

Meh...we were down 20% and have negative GDP growth. Maybe we should take notes on how to run an economy.
Again... does not help this thread at all. Keep it to yourself.

The Russian economy has punted it's woes down the field. They gained the field position for now but they are in defense now with their economy and you can't move the ball in your favor that way. Sooner or later the other team scores and that will happen. It is all about energy prices... they go low, Russia is done for economically.
It's not a political statement, it's a fact. A 10% market drop from the highs is nothing. The author putting that in the article loses all credibility. The Nikkei is down 13% from it's high right now and was down 26%. To have a positive GDP in war time with all the sanctions is amazing. Russia has done an excellent job managing it's economy. At least good enough to keep war favorability polls steady.
yep.
 
Russia and Ukraine clash over ceasefire proposals as fighting rages

Ukraine and Russia are at odds over competing ceasefire proposals, as Moscow accused Ukrainian President Volodymyr Zelenskyy of threatening the safety of dignitaries attending Victory Day celebrations after he dismissed Russia’s unilateral 72-hour ceasefire. Zelenskyy instead renewed calls for a more substantial 30-day pause in hostilities, as the U.S. had initially proposed. He said the proposed ceasefire could start anytime as a meaningful step toward ending the three-year war. “Let’s be honest — you can’t agree on anything serious in three, five, or seven days,” he said. Zelenskyy said that Moscow’s announcement of a 72-hour ceasefire next week in Ukraine to mark Victory Day in World War II is merely an attempt to create a “soft atmosphere” ahead of Russia’s annual celebrations. “It looks unserious,” he said, “so that (Russian President Vladimir) Putin’s guests on Red Square feel comfortable and safe.”
 
Two Russian Su-30 Flankers Downed By AIM-9s Fired From Drone Boats: Ukrainian Intel Boss

Ukraine’s Defense Intelligence Directorate (GUR) shot down two Su-30 Flanker multirole fighters with AIM-9 Sidewinder infrared-guided air-to-air missiles fired by Magura-7 drone boats, the head of the agency told The War Zone exclusively. This marks the first time fighter airecraft have been downed by drone boats and the first use of the AIM-9 from a drone boat for a kill.

“It’s a historical moment,” Lt. Gen. Kyrylo Budanov told us. The War Zone cannot independently verify this claim.

The incident took place in the Black Sea on Friday, said Budanov, who offered new details about what happened. Previous reporting from GUR, the Ukrainian Defense Ministry and Russian Telegram channels stated that one Flanker was shot down by an adapted infrared-guided R-73 (AA-11 Archer) short-range air-to-air missile.

Video emerged on social media showing the first Flanker downing. Budanov said there were no videos or images of the second engagement.

More American Air Defense Is on the Way to Help Ukraine

Ukraine is getting more help in its war with Russia.
A Patriot air-defense system that was based in Israel will be sent to Ukraine after it is refurbished, four current and former U.S. officials said in recent days, and Western allies are discussing the logistics of Germany or Greece giving another one.

Data compiled by the weapons trackers at the International Institute for Strategic Studies in London suggest about 186 Patriot systems are in operation worldwide. The United States owns about one-third of them and has sent many abroad to protect allies in Europe, Asia and the Middle East.
Several dozen Patriots have been sent to the Indo-Pacific region because of threats from China and North Korea, although the United States recently moved at least one to the Middle East to safeguard Israel.
European allies own about 40 systems, including the eight now in Ukraine.
The ninth Patriot coming from Israel and being overhauled for Ukraine is an older model, according to two of the U.S. officials. It is expected to be delivered to Ukraine by this summer. Germany and Greece together own about 15 Patriot systems, according to the international institute’s data.

France to ramp up AASM Hammer smart bomb production for Ukraine, media reports

France plans to manufacture 1,200 AASM Hammer guided air bombs in 2025, up from 830 units produced in 2024, Le Parisien, a French daily newspaper, reported on May 2.

The French-made precision bombs are being transferred to Ukraine as part of ongoing defense support, and their use by Ukrainian fighter jets has grown significantly since the start of Russia’s full-scale invasion.

The AASM Hammer, developed by French company Safran, has become a weapon of choice for Ukraine’s air force thanks to its high accuracy and resistance to Russian electronic warfare, according to Le Parisien. The French government asked Safran to integrate surface-to-air missile systems (SAM) onto Ukrainian fighter jets after American JDAM GPS-guided munitions failed to hit targets. Safran reportedly completed the integration "in less than four months in the fall of 2023," enabling precise targeting from Ukraine’s Soviet-era jets.

Initiative allows 18-24 year olds to fight in Ukraine

A Ukrainian initiative allowing those below the draft age of 25 to serve in the military on one-year contracts is fully under way.

The scheme was introduced earlier this year and entices 18 to 24-year-olds to join the army with the promise of lucrative contracts, social benefits and elite training.

The approach also enables Ukraine to recruit younger soldiers without having to formally lower the draft age, a move that it has long resisted, even in the face of White House pressure.

Xi 'to sign deals' in Moscow this month

Chinese President Xi Jinping will make an official visit to Russia this month to participate in VE Day celebrations, the Kremlin has said.

In a statement on Telegram, the Kremlin said that Xi will discuss with Vladimir Putin the development of the two countries' strategic partnership, as well as signing a number of documents.

"During the talks, the main issues of further development of relations of comprehensive partnership and strategic interaction, as well as current issues on the international and regional agenda will be discussed," the Kremlin said.

Russia's celebrations of the 80th anniversary of the defeat of Nazi Germany will take place from 7-10 May.

ERR in Kupiansk: Ukrainian artillerymen fighting off Russian advance

Half of the soldiers serving in Ukraine's army have been recently mobilized. They are performing their duties well but are eagerly awaiting the end of the war. An "Aktuaalne kaamera" news crew visited the hottest section of the front line in Kharkiv Oblast.

The hotter the section of the front line you want to reach, the earlier you need to set out to avoid becoming a victim of enemy drones. The artillery troops of the 154th Brigade are holding back the Russian advance in the area.

Just like Pokrovsk in Donbas, Kupiansk in Kharkiv Oblast is currently one of the hottest spots on the front line.

"They [the Russians] have already crossed the Oskil River. We're trying to push them back, but there are just so many of them. That's why we need more shells — to kill them all," said Ukrainian soldier Kasik.

"They don't want a ceasefire. They keep pushing forward. They come and come. They're trying to occupy as much Ukrainian land as possible," added soldier Mustlane.

A year ago, there were high hopes for the so-called Czech initiative, which promised to supply Ukraine with a million shells.
"As for the Czech initiative, the reality is that there are very few shells. Ammunition is so scarce that we're trying to repel their attacks with just one or two shots," Kasik noted.
 
It's not a political statement, it's a fact. A 10% market drop from the highs is nothing. The author putting that in the article loses all credibility. The Nikkei is down 13% from it's high right now and was down 26%. To have a positive GDP in war time with all the sanctions is amazing. Russia has done an excellent job managing it's economy. At least good enough to keep war favorability polls steady.
Please see my other post listing the economic data and tell me that that is nothing and an excellent management of an economy. And again, this is not a management of an economy this is buying time based on the enormous natural resources. If the prices of those resources drop- there is no management of an economy- it implodes. Largely due to Europe spending more in buying energy from Russia than they have sent to Ukraine to support it. They have bought time based on oil and gas, nothing more.
 
It's not a political statement, it's a fact. A 10% market drop from the highs is nothing. The author putting that in the article loses all credibility. The Nikkei is down 13% from it's high right now and was down 26%. To have a positive GDP in war time with all the sanctions is amazing. Russia has done an excellent job managing it's economy. At least good enough to keep war favorability polls steady.
Please see my other post listing the economic data and tell me that that is nothing and an excellent management of an economy. And again, this is not a management of an economy this is buying time based on the enormous natural resources. If the prices of those resources drop- there is no management of an economy- it implodes. Largely due to Europe spending more in buying energy from Russia than they have sent to Ukraine to support it. They have bought time based on oil and gas, nothing more.
And many countries have bought time piling up huge amounts of debt. I'll agree 100% that they are kicking the can down the road. That said, I'm not writing them off when they are creating partnerships with North Korea and now China. They've been able to get another country to supply battle field troops, something Ukraine hasn't been able to accomplish.
 

Russia's economic miracle fades as growth grinds to a halt​


After years of unexpected resilience, the Russian economy is showing clear signs of slowing down. Indicators suggest that the annual growth rate has dropped from 5% to nearly 0%. High inflation has prompted the central bank to keep interest rates at 21%, and global trade tensions are further weakening Russian markets, which rely on the export of raw materials.
Sergey Lavrov, Russia's Foreign Minister, recently told the American network CBS that Russia has become immune to Western sanctions because it has "restructured the economy to be self-sufficient." These assurances contradict the analysis conducted by "The Economist."

The weekly publication suggests that the first symptoms of economic slowdown are visible nationwide, from Kaliningrad to Vladivostok. Evidence for this includes data from Goldman Sachs, which suggests that since the end of last year, Russia’s annual economic growth rate has fallen from about 5% to nearly zero. Similar trends are shown by the monthly growth estimates prepared by the Russian Development Bank VEB. Sberbank, Russia's largest lender, also reports a downward trend in high-frequency business turnover.

Although the Russian government is more reserved in its comments, it admits that the situation has changed. At the beginning of April, the Russian central bank reported that declines in production had been recently registered in many sectors, driven by rapidly falling demand.

The end of the economic miracle​

Over the last three years, signals from beyond Poland’s eastern border have been much more troubling. Despite sanctions and wartime expenditures, Russia’s economy exceeded almost all forecasts. This was due to a combination of fiscal expansion, high commodity prices, and the militarization of the economy. After the full-scale invasion of Ukraine in 2022, economists predicted a drop in Russia's annual GDP of up to 15%. In reality, the rate fell by only 1.4%, then increased by 4.1% in 2023 and 4.3% in 2024. Consumer confidence approached record-high levels.

As it seemed that Donald Trump, the President of the United States, might give Vladimir Putin what he wants to end the war in Ukraine, some analysts predicted Russia’s economy would accelerate even more in 2025. Current data points to a completely different scenario.
What is behind the sudden slowdown? Three reasons seem most likely. The first is what Russia's central bank euphemistically calls the "structural transformation" of the economy. Previously oriented towards the West and accepting private enterprise (with some restrictions), Russia has since 2022 shifted to a wartime economy oriented towards the East.

This transformation required massive investments, not only in arms and ammunition factories but also in new supply chains to increase trade with China and India, as well as to boost domestic production. By mid-2024, real capital expenditures were 23% higher than at the end of 2021.

According to the central bank, this adaptation is now complete. Military spending follows a similar pattern. Julian Cooper from the Stockholm International Peace Research Institute (SIPRI) estimates that this year, military expenditures will rise by only 3.4% in real terms, a drastic slowdown compared to the 53% increase last year. Weaker spending on "structural transformation" means slower growth.

Inflation and interest rates slow the economy​

The second factor is monetary policy. Inflation in Russia has been above the central bank’s target of 4% annually for months, even exceeding 10% in February and March. This is due not only to the growing pace of military spending but also to a labor shortage caused by conscription and the emigration of skilled workers. Last year, nominal wages in Russia rose by 18%, forcing companies to raise prices. In response, the central bank tightened control.


On April 25, the Russian central bank decided to keep the benchmark interest rate at 21%—the highest in the 21st century. Its super-hawkish stance may finally be yielding results. High rates encourage capital inflow into the ruble, making imports cheaper. Russians' inflation expectations over the next 12 months are falling from a recent peak of about 14% to around 13%. High-frequency data suggests that inflation is gradually decreasing.

Instead of spending money, Russians are placing it in savings accounts. High rates further discourage capital investments. If that were the whole story, perhaps Putin would remain satisfied. For the Russian government, a small, gradual slowdown might be a price worth paying if it means taming inflation.

The problem is that the slowdown is neither gradual nor small. This is occurring because, in recent weeks, a third factor has started to dominate all others—external conditions have deteriorated. As the U.S. trade war escalates, global growth forecasts have fallen, and oil prices have followed suit.


Falling oil prices a disaster for Russia​

Economists are particularly concerned about the situation in China—Russia's largest oil buyer. The International Monetary Fund has lowered its expectations for China’s GDP growth in 2025 from 4.6% to 4%. Falling oil prices are causing numerous problems in Russia. They have hit the stock market, where oil companies account for a quarter of the capitalization. The Micex Index, which tracks the stock prices of over 50 major listed companies, has fallen by one-tenth from the last peak.

As export revenues decline, falling oil prices directly affect the real economy. The Russian budget is already feeling the effects—in March, tax revenues from oil and gas fell by 17% compared to the previous year. On April 22, Reuters reported, citing official documents, that the government expects a sharp drop in oil and gas sales this year.


Germany also suffers. they lost hundreds of billions of euros due to crises​

Losses are also visible on the other side of the political barricade. According to the German Economic Institute (IW) in Cologne, over the past three years, the German economy has not managed to exceed the level of 2019 after an initial post-pandemic recovery. Without pandemic-related losses and subsequent crises, German GDP would be about 735 billion euros higher.

The most serious crisis since German reunification​

Michael Grömling, Chief Economist at the IW, emphasizes the gravity of the current situation, describing it as the most severe economic downturn Germany has faced since reunification. He attributes this deep crisis to the combined effects of the COVID-19 pandemic and the war in Ukraine, which have effectively brought business investments to a standstill, thereby constraining the country's production capacity in the foreseeable future.


The total economic losses due to reduced private consumption over the past five years are estimated to be over 470 billion euros. This translates to about 6,000 dollars per German resident.

Grömling also highlights a notable change in the pattern of economic losses. He explains that during the pandemic's peak, the decline in consumer spending was the primary driver of economic damage. However, in more recent years, the growing impact has come from a significant shortfall in investment, which has become the dominant source of financial strain.
The Micex Index, which tracks the stock prices of over 50 major listed companies, has fallen by one-tenth from the last peak.

Meh...we were down 20% and have negative GDP growth. Maybe we should take notes on how to run an economy.
Again... does not help this thread at all. Keep it to yourself.

The Russian economy has punted it's woes down the field. They gained the field position for now but they are in defense now with their economy and you can't move the ball in your favor that way. Sooner or later the other team scores and that will happen. It is all about energy prices... they go low, Russia is done for economically.

my $.0002, as long as price of gas/oil are not bottoming out and countries buy it from Russia, their economy isn't going to crash.

i don't see opec, or USA for that matter, wanting energy prices to crash.

OPEC+ just raised output into a weakening global economy. Mostly because Saudi Arabia seems like they are done subsidizing other OPEC countries that can never maintain their quotas so not so sure of OPEC has will to keep prices up. Trump personally wants price down.


 

Russia's economic miracle fades as growth grinds to a halt​


After years of unexpected resilience, the Russian economy is showing clear signs of slowing down. Indicators suggest that the annual growth rate has dropped from 5% to nearly 0%. High inflation has prompted the central bank to keep interest rates at 21%, and global trade tensions are further weakening Russian markets, which rely on the export of raw materials.
Sergey Lavrov, Russia's Foreign Minister, recently told the American network CBS that Russia has become immune to Western sanctions because it has "restructured the economy to be self-sufficient." These assurances contradict the analysis conducted by "The Economist."

The weekly publication suggests that the first symptoms of economic slowdown are visible nationwide, from Kaliningrad to Vladivostok. Evidence for this includes data from Goldman Sachs, which suggests that since the end of last year, Russia’s annual economic growth rate has fallen from about 5% to nearly zero. Similar trends are shown by the monthly growth estimates prepared by the Russian Development Bank VEB. Sberbank, Russia's largest lender, also reports a downward trend in high-frequency business turnover.

Although the Russian government is more reserved in its comments, it admits that the situation has changed. At the beginning of April, the Russian central bank reported that declines in production had been recently registered in many sectors, driven by rapidly falling demand.

The end of the economic miracle​

Over the last three years, signals from beyond Poland’s eastern border have been much more troubling. Despite sanctions and wartime expenditures, Russia’s economy exceeded almost all forecasts. This was due to a combination of fiscal expansion, high commodity prices, and the militarization of the economy. After the full-scale invasion of Ukraine in 2022, economists predicted a drop in Russia's annual GDP of up to 15%. In reality, the rate fell by only 1.4%, then increased by 4.1% in 2023 and 4.3% in 2024. Consumer confidence approached record-high levels.

As it seemed that Donald Trump, the President of the United States, might give Vladimir Putin what he wants to end the war in Ukraine, some analysts predicted Russia’s economy would accelerate even more in 2025. Current data points to a completely different scenario.
What is behind the sudden slowdown? Three reasons seem most likely. The first is what Russia's central bank euphemistically calls the "structural transformation" of the economy. Previously oriented towards the West and accepting private enterprise (with some restrictions), Russia has since 2022 shifted to a wartime economy oriented towards the East.

This transformation required massive investments, not only in arms and ammunition factories but also in new supply chains to increase trade with China and India, as well as to boost domestic production. By mid-2024, real capital expenditures were 23% higher than at the end of 2021.

According to the central bank, this adaptation is now complete. Military spending follows a similar pattern. Julian Cooper from the Stockholm International Peace Research Institute (SIPRI) estimates that this year, military expenditures will rise by only 3.4% in real terms, a drastic slowdown compared to the 53% increase last year. Weaker spending on "structural transformation" means slower growth.

Inflation and interest rates slow the economy​

The second factor is monetary policy. Inflation in Russia has been above the central bank’s target of 4% annually for months, even exceeding 10% in February and March. This is due not only to the growing pace of military spending but also to a labor shortage caused by conscription and the emigration of skilled workers. Last year, nominal wages in Russia rose by 18%, forcing companies to raise prices. In response, the central bank tightened control.


On April 25, the Russian central bank decided to keep the benchmark interest rate at 21%—the highest in the 21st century. Its super-hawkish stance may finally be yielding results. High rates encourage capital inflow into the ruble, making imports cheaper. Russians' inflation expectations over the next 12 months are falling from a recent peak of about 14% to around 13%. High-frequency data suggests that inflation is gradually decreasing.

Instead of spending money, Russians are placing it in savings accounts. High rates further discourage capital investments. If that were the whole story, perhaps Putin would remain satisfied. For the Russian government, a small, gradual slowdown might be a price worth paying if it means taming inflation.

The problem is that the slowdown is neither gradual nor small. This is occurring because, in recent weeks, a third factor has started to dominate all others—external conditions have deteriorated. As the U.S. trade war escalates, global growth forecasts have fallen, and oil prices have followed suit.


Falling oil prices a disaster for Russia​

Economists are particularly concerned about the situation in China—Russia's largest oil buyer. The International Monetary Fund has lowered its expectations for China’s GDP growth in 2025 from 4.6% to 4%. Falling oil prices are causing numerous problems in Russia. They have hit the stock market, where oil companies account for a quarter of the capitalization. The Micex Index, which tracks the stock prices of over 50 major listed companies, has fallen by one-tenth from the last peak.

As export revenues decline, falling oil prices directly affect the real economy. The Russian budget is already feeling the effects—in March, tax revenues from oil and gas fell by 17% compared to the previous year. On April 22, Reuters reported, citing official documents, that the government expects a sharp drop in oil and gas sales this year.


Germany also suffers. they lost hundreds of billions of euros due to crises​

Losses are also visible on the other side of the political barricade. According to the German Economic Institute (IW) in Cologne, over the past three years, the German economy has not managed to exceed the level of 2019 after an initial post-pandemic recovery. Without pandemic-related losses and subsequent crises, German GDP would be about 735 billion euros higher.

The most serious crisis since German reunification​

Michael Grömling, Chief Economist at the IW, emphasizes the gravity of the current situation, describing it as the most severe economic downturn Germany has faced since reunification. He attributes this deep crisis to the combined effects of the COVID-19 pandemic and the war in Ukraine, which have effectively brought business investments to a standstill, thereby constraining the country's production capacity in the foreseeable future.


The total economic losses due to reduced private consumption over the past five years are estimated to be over 470 billion euros. This translates to about 6,000 dollars per German resident.

Grömling also highlights a notable change in the pattern of economic losses. He explains that during the pandemic's peak, the decline in consumer spending was the primary driver of economic damage. However, in more recent years, the growing impact has come from a significant shortfall in investment, which has become the dominant source of financial strain.
The Micex Index, which tracks the stock prices of over 50 major listed companies, has fallen by one-tenth from the last peak.

Meh...we were down 20% and have negative GDP growth. Maybe we should take notes on how to run an economy.
Again... does not help this thread at all. Keep it to yourself.

The Russian economy has punted it's woes down the field. They gained the field position for now but they are in defense now with their economy and you can't move the ball in your favor that way. Sooner or later the other team scores and that will happen. It is all about energy prices... they go low, Russia is done for economically.

my $.0002, as long as price of gas/oil are not bottoming out and countries buy it from Russia, their economy isn't going to crash.

i don't see opec, or USA for that matter, wanting energy prices to crash.

OPEC+ just raised output into a weakening global economy. Mostly because Saudi Arabia seems like they are done subsidizing other OPEC countries that can never maintain their quotas so not so sure of OPEC has will to keep prices up. Trump personally wants price down.


he wants to drill yet he wants prices down.

drilling oil in US isn't profitable at what $60 or less? not sure how the administration expects to "drill baby drill" in this situation.

but what do i know.
 

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