Putin Faces Elite Revolt As Sanctions Crush Russian Industry

 

Vladimir Putin is facing rising anger from Russia’s business elite as the country’s economy strains under sanctions, rising interest rates and collapsing demand. Executives at major industrial firms say 2025 sales are the worst since the 1998 financial crisis, when the rouble crash triggered bank failures, wiped out savings, and sent inflation soaring.

 

Latest November data from state agency Rosstat shows overall industrial production fell 0.7% year-on-year. Key sectors are shrinking fast: metallurgy down 4.1%, chemicals 1.7%, and mechanical engineering 5.4%. Even food production declined 0.8% — the first fall in 15 years.

The steepest collapse is in vehicle and machinery manufacturing. Car production plunged 34%, trucks 43%, tractors 61%, and buses 28%. Industry leaders see little prospect of a rebound, warning the downturn is structural rather than temporary.

 

Researchers at Russia’s Institute of Economic Forecasting report that frustration with the Kremlin is growing sharply among top managers. Economist Alexandra Prokopenko said Russia’s war-driven economy is undergoing “reverse deindustrialisation” as hi-tech, high-productivity civilian sectors give way to labour-intensive military production.

 

She described the economy as “frozen” and “unstable,” likening it to a car overheating while idling in neutral — unable to move forward or back while internal damage builds. Business leaders reportedly believe the Kremlin has ignored their warnings for too long and suggest their patience is running out as the costs of the Ukraine war deepen.

 

While official data still shows pockets of military-linked growth, the broader civilian economy appears to be stagnating under the combined weight of sanctions, capital controls, inflationary pressures and collapsing consumer demand — a trajectory analysts say risks long-term decline.

 

Key Takeaways

• Russian industrial sales reported to be worst since 1998.

• Vehicle and machinery production has collapsed 30–60%.

• Business elites increasingly blame the Kremlin and the war economy.

 

Source: Express

 

 

 

Another win for Trump!

6 minutes ago, Social Media said:

Russia’s war-driven economy is undergoing “reverse deindustrialisation

As if that is a bad thing ? 

And at the same time the industries needed for the war economy are shrinking...yeah shades of washing machine I think.

it's about time they open their eyes and see the reality of what the war is removing from their pockets

Putin Faces Elite Revolt As Sanctions Crush Russian Industry

 

Of course he does.  And he's dying.  The Russian economy is crushed.  Grocery store shelve are bare.  Lines for gas are miles long.  The Russian citizens are about to revolt and overthrow the government, they just need the EU to give them a push.  Ukraine is winning the war.  The EU economy is flourishing.  Life for EU citizens has never been better.

Or?

It's all a crock.  

Time uncovers Truths that Western elites would rather have hidden in the dustbin of history.  But time uncovers all.  Check back in a year to see which governments prospered, which governments failed, who is in power, and who is in the grave. Then you'll know for sure.

I think we'll hear about "elites" falling out of windows soon.

Drunkenness on vodka will increase

The word 'reverse' in the phrase 'reverse industrialization' is redundant. As it stands, it means the opposite of what it's trying to say.

The more Russian men die in battle or from alcoholism, the more Russian girls are available. Wish they would learn to smile.