https://www.politico.eu/article/vladimir-putin-russia-donald-trump-moscow-ukraine-gdp-finance-war-banks/
Why Putin is finally negotiating
Fiscally speaking, Russia is running out of time. The Kremlin has no plan D to finance its budget deficit, raising questions about its ability to fund the war. From this perspective, fiscal breathing room could well be what Putin is really looking for in his talks with the U.S., whether through sanctions relief (for instance, relaxing U.S. restrictions on Russia’s ability to place external debt) or a pause in the conflict (which would allow Moscow to replenish its coffers via a reduction in defense spending).
Back in September 2024, Kyrylo Budanov, Ukraine’s defense intelligence chief, predicted that mired in economic problems, Moscow would try to force an end to the war in 2025. These words may now be proving prescient.
The reason Putin might finally be ready to negotiate seems to be remarkably simple: He wants to avoid a humiliating bankruptcy.
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