Kremlin cheers Trump win, oligarchs doubt sanctions relief
The Kremlin positively received Donald Trump's election as the 47th President of the United States, particularly regarding the potential end of the war in Ukraine. However, oligarchs interviewed by Bloomberg do not share Moscow's optimism and are reluctant to criticize the government openly.
5:37 PM EST, November 12, 2024
Since the invasion of Ukraine began in February 2022, Russia has faced sanctions that—contrary to official Russian propaganda—have impacted the country’s economy. This is evident in measures such as the central bank's increased interest rates to control inflation despite the understated communication of these efforts. Nevertheless, the effects of rising prices, such as those for butter, are being discussed on social media.
However, sanctions are a double-edged sword. Western economies, which decided to quickly cut off cheap Russian energy resources, have also suffered. The rise in inflation in the United States, among other places, was a campaign issue for Donald Trump, who stated he preferred using high tariffs instead of restrictions.
The Kremlin warmly received Trump's election as the 47th President of the United States. The press secretary of Russian leader Vladimir Putin mentioned positive signals from Trump regarding the end of the war in Ukraine. But what will the Republican do during his second term in the White House? That remains speculative.
The Kremlin's optimism does not seem to be shared by the oligarchs. Bloomberg asked Russian billionaires if they expect sanctions to be eased after Donald Trump takes office. They responded, on the condition of anonymity, that they do not anticipate the restrictions being lifted even in the event of a truce in Ukraine.
Billionaires see things differently than Russian propaganda
The agency also questioned billionaires about the government's September forecasts, which predict economic growth increasing from 2.5 percent in 2025 to over 3 percent from 2028 to 2030. They believe the Kremlin's optimism in this regard is unwarranted.
According to Bloomberg's sources—who are dealing with higher taxes due to the state's "defense" expenditures—Moscow should acknowledge that there is a "war" in Ukraine, not a "special military operation", thereby helping society understand the cause of such high inflation.
The discussion of admitting to waging war also comes up in the context of raised interest rates. According to the billionaires, it is currently more advantageous for them to hold back on business development and investments, which finance wartime efforts and should be supported by the state.
