ISW reveals the scale of the economic disaster in Russia: what is Putin hiding.

The Institute for the Study of War (ISW) has published a report revealing a large-scale information campaign by the Kremlin aimed at downplaying the true impact of the war against Ukraine on the Russian economy. According to the document, this campaign targets both domestic and international audiences.

On February 7, Russian Prime Minister Mikhail Mishustin met with Vladimir Putin regarding the economic situation in the country. 'Russia's GDP grew by 4.1% in 2024, mainly due to the intensive growth of the manufacturing industry,' Mishustin said, hinting at the expansion of the country's defense industrial base following the onset of the full-scale invasion of Ukraine.

Official Kremlin statistics claim an inflation rate of 9.52% for 2024, while according to Putin, as of February 3, 2025, the figure reached 9.9%. However, research indicates a significantly higher real inflation rate in the country - around 20%.

Notably, during the meeting, Mishustin warned of a possible slowdown in economic growth in 2025, emphasizing the need to rein in inflation. ISW analysts consider this an attempt to prepare the population for future economic challenges.

The report also notes that the Russian leadership deliberately conceals critical economic indicators. In particular, it does not mention the Central Bank's increase of the interest rate to 21% in October 2024 and the use of funds from the National Welfare Fund to finance military needs over the past three years.

Experts predict that the liquid part of this fund may be fully exhausted by the fall of 2025.

It has also become known that Putin is concerned about the state of the Russian economy - the elites want peace.