Russian economy 'weakness' exposed as Putin Alaska summit blunder shows 'false narrative'

Vladimir Putin betrayed the weakness of the Russian economy by agreeing to a summit with Donald Trump in Alaska as he faced more sanctions, experts have said. Putin's decision to reach out immediately before Trump imposed further economic restrictions against Russia or its trading partners "undermines the Kremlin's ongoing narrative that sanctions have not and will not affect the Russian economy", the Institute for the Study of War (ISW) stated in its daily report on the full-scale invasion of Ukraine.

It added: "Kremlin officials have routinely claimed that Russia's economy is strong and impervious to further US or other Western sanctions, both in order to portray stability to the domestic Russian audience and to convince Western states not to impose further sanctions against Russia and its trading partners. Putin's decision to reach out to Trump immediately before the United States imposed additional economic restrictions demonstrates the Kremlin's recognition that this narrative is false.

"The Russian economy is weaker than Russian officials project, and Russia has implemented monetary and economic policies to disguise Russia's economic issues, but that will likely exacerbate Russia's instability instead."

But Putin may face more sanctions nonetheless, as the US Treasury Secretary Scott Bessent suggested that, if the planned meeting in Alaska proves fruitless, Washington may use sanctions and secondary duties.

"Trump will make it clear to Putin that all courses of action are possible," he warned.

Meanwhile, the European Union is reportedly assessing the possibility of a gradual easing of sanctions against Russia if a ceasefire agreement is reached in Ukraine.

Sir Keir Starmer said earlier today that plans have already been formed to deploy a "reassurance force" if a ceasefire has been agreed.

The Prime Minister added the UK was also drawing up further sanctions on Russia as part of an attempt to squeeze Putin.

He said: "We’ve made some real progress today. A very important call with President Trump earlier on in relation to security guarantees, as Emmanuel (Macron) has just set out.

"As we’ve said all along, we the coalition, stepping up, showing what we will do, but plans we’ve put forward, credible military plans alongside that with the backing of the US. We stand ready as a coalition to support the meeting on Friday and everything I hope can flow out of it."

Sir Keir added: "We’re ready to support this, including through the plans that we’ve already drawn up to deploy a reassurance force once hostilities have ceased. It is important to remind colleagues that we do stand ready also to increase pressure on Russia, particularly the economy, with sanctions and wider measures as necessary.

"You can see the effect of those measures already, and we in the UK are preparing our next packages of strong sanctions in that regard."