Sanctions and Inflation Sink Russia as Putin Hits Alaska’s Stage

As world leaders gear up for a high-stakes summit in Anchorage, Alaska, Russia’s walking into the ring with a battered economy. The war-driven boom, fueled by massive military spending and steady oil exports, is running on fumes. Persistent inflation, sky-high interest rates, and relentless Western sanctions are hitting Russian consumers hard, casting a dark cloud over President Vladimir Putin’s plans as he prepares to face off on the global stage.

Russia’s economic outlook is grim. The International Monetary Fund slashed its 2025 GDP growth forecast to just 0.9%, a nosedive from over 4% in 2024. Inflation’s eating away at wallets, with prices for basics like food and utilities soaring. The Russian central bank’s jacking up interest rates to tame the beast, but it’s choking growth in the process. Consumers are feeling the squeeze, and the once-robust war economy is starting to crack under the pressure.

Western sanctions, tightened since Russia’s invasion of Ukraine, are like sand in the gears. They’re disrupting trade, locking Russia out of global markets, and slashing oil revenues as prices dip and restrictions bite. Despite these headwinds, analysts say Putin’s unlikely to back down from his Ukraine goals, betting on domestic fixes to keep things afloat. But the cracks are showing, and the economy’s on shaky ground.

The Alaska summit’s timing couldn’t be worse. Russia’s stepping in with a weakened hand, but Putin’s playing it tough. Global markets are on edge, with the Dow Jones hovering near 45,009 and crude oil sliding to $62.94. Any sparks from this summit could jolt energy prices and geopolitics. Russia’s balancing on a tightrope, and one wrong move could set the whole scene ablaze.