While U.S. sanctions caused the Russian currency to drop sharply in November, the changing structure of trade flows means the ruble is doomed to weaken further. 

Podcast host Alex Gabuev is joined by Alexandra Prokopenko, a fellow at Carnegie Russia Eurasia Center, and by Alexander Kolyandr, a financial analyst and non-resident senior scholar at the Center for European Policy Analysis, to discuss the state budget for 2025/26 and the prospects of the Russian economy in coming years.

Washington and Brussels appear to believe making it more expensive to get around Western restrictions will fuel inflation in Russia and boost economic inefficiency.

The authors of the article studied the exodus of Russians following the invasion of Ukraine. They also examined the challenges faced by the Central Bank as it struggles to control inflation.

Russia’s tax reform comes at the expense of companies working outside of the defense sector and related industries.

The ideas of economist Adam Smith could help the West to come up with more effective ways to limit Russia’s military capabilities.

Appropriating frozen Russian assets to use them for Ukraine’s needs is morally justified and may help Kyiv finance its war needs, but it would also entail risks, and that explains the EU’s hesitancy to follow this path—at least for now.