How have sanctions affected Russia's economy in 2025?

Sanctions have constricted certain sectors, particularly technology and finance. However, Russia's significant oil and gas revenue has helped mitigate these impacts, allowing the economy to endure without major policy concessions.

Why is Putin's strategy focused on energy exports?

Energy exports constitute over 30% of Russia's GDP, providing a substantial revenue stream. This focus on hydrocarbons helps sustain the economy despite sanctions, enabling strategic resilience and reducing the need to alter geopolitical positions.

What measures has the Kremlin taken to stabilize the economy?

The Kremlin has increased spending on infrastructure and welfare to stimulate domestic markets. Additionally, it’s investing in alternative energy sources to diversify the economy, aiming to strengthen economic stability amidst international pressures.

Law and Government

Russia’s Economic Outlook: Putin’s Strategy Amid Sanctions on December

ByHuzaifa Zahoor December 21, 2025December 21, 2025

Russia’s economic strategy in the face of Western sanctions remains a critical focus as 2025 draws to a close. Despite inflation and a pressing budget deficit mainly attributed to military expenditures, President Vladimir Putin’s approach shows no signs of wavering from the Ukraine conflict. This resilience rests heavily on continued oil and gas revenues, minimizing the impact of sanctions and maintaining a steady economic course. These financial maneuvers allow the Kremlin to sustain its geopolitical objectives without substantial concessions.