Russia's War Push Strains Economy, Forces Putin to Shake Down Oligarchs for Cash

Russia's War Push Strains Economy, Forces Putin to Shake Down Oligarchs for Cash Russia is intensifying its military campaign in Ukraine while facing severe financial strain at home, leading President Vladimir Putin to directly solicit funds from the country's wealthiest oligarchs to support the war effort [112938]. This move underscores the mounting economic pressure from the conflict, even as the Kremlin signals its intent to fight a long war and refuses to rush into any peace deal that doesn't meet its goals [17910][17045]. According to a report, Putin recently asked oligarchs for direct donations to bolster Russia's military budget, with at least two businessmen agreeing to contribute [112938]. The request comes as Russia's defense spending surged by 42% last year, widening the budget deficit [112938]. To stabilize finances, the government has raised taxes, including an increase in value-added tax (VAT) [112938]. Despite the economic crunch, analysts note Putin's strategic goals remain unchanged, with no urgency to negotiate from a position he perceives as strong [17045]. U.S. intelligence assessments support this view, indicating Putin's ultimate aim extends beyond Ukraine to reclaiming influence over former Soviet states, suggesting a prolonged conflict [31282]. On the diplomatic front, Russia is employing aggressive tactics to deter international support for Ukraine. The Czech Republic summoned Russia's ambassador after Moscow declared European companies supplying drones to Ukraine as "legitimate military targets," a significant escalation aimed at private firms in NATO and European Union states [131324]. Simultaneously, the Kremlin is accused of using major agreements like the New START nuclear treaty as a bargaining chip to pressure the United States away from backing a Ukraine peace settlement [60361]. While talking war to Europe, Russian officials have pursued a separate track with Washington, asking for sanctions to be lifted and seeking to calculate financial losses from halted trade—a strategy analysts say aims to create divisions among Ukraine's allies [82150]. The financial demands on oligarchs highlight the war's deepening impact on Russia's economy, which is strained by sanctions that force it to sell oil at a discount [112938]. In a meeting with business leaders, Putin advised a "moderately conservative approach" to spending any extra revenue from higher global oil prices [112938]. The Kremlin maintains it is open to U.S.-mediated peace talks but states major issues, including territory, remain unresolved [112938]. Putin Seeks Oligarch Donations to Fund War as Defence Budget Strains Putin Signals Long War in Ukraine Amid Economic Strain Russia Holds Advantage, In No Rush on Ukraine Deal, Expert Says U.S. Intelligence: Putin's Goal is "Former Soviet Empire" Russia Threatens European Drone Makers, Sparking Diplomatic Fury in Prague Russia Uses Nuclear Treaty as Bargaining Chip on Ukraine, Analysts Say Russia's Dual Strategy: Talk War with Europe, Talk Trade with America