“Vladimir Putin is winning the war of attrition against Ukraine. Although the Russian people are also suffering, the pain is not enough to force the newly re-elected president to change course. He might reconsider if the West could squeeze Russia’s oil revenue. But that will be hard to engineer,” Ednews informs, citing Reuters.

According to Reuters, even if receipts from hydrocarbons stay at the same level, the Russian government is going to have to squeeze its citizens: “The economy is overheating as Putin, who has just secured a new six-year term to extend his 24-year rule, pumps more money into the war effort. Defense spending, which is budgeted at 10.8 trillion roubles ($118 billion) this year, has trebled since the war began. Inflation is 7.7%, opens a new tab, and there are severe labor shortages.”

According to the article, the government will also need to take fiscal measures to bring domestic consumption in line with production: “Top of the list are likely to be tax increases focused on richer individuals and companies. Putin has already signaled as much. While such decisions will be unpopular with some, he will face no opposition ramming them through.”