Trump frustrated amid warning Putin can escalate conflict

Russian President Vladimir Putin has enough capital to finance the war in Ukraine for years to come despite growing economic pressure, the former head of the country’s central bank told CNBC on Friday.

Sergey Aleksashenko, former deputy governor of the Russian central bank, said in his statement to CNBC’s “Europe Early Edition” program, “The Russian economy is close to recession.”

Aleksashenko said on Friday that the Central Bank of Russia predicted only 0.9% growth for the country’s economy, compared to 4.3% last year, and said that the “mood is not good”.

But he added that the “glass is half full” as the central bank gradually reduces inflation and various sectors move in opposite directions.

Asked whether Putin had enough money to finance the war in Ukraine, Aleksashenko answered, “Unfortunately, yes.”

“He has enough money to finance the war, despite all the rumors, despite the increasing budget deficit and the increasing debts of the Minister of Finance,” he told CNBC.

“I’m pretty sure it can finance the war for at least another two, three years. Maybe more,” he added.

Russia’s full-scale invasion of Ukraine began in early 2022, and troops are now in the fourth winter of the conflict.

Aleksashenko’s comments came after NATO chief Mark Rutte issued a stern warning to allies that they face a serious risk of attack from Moscow.

“We are Russia’s next target and we are already in danger,” he said in a speech in Germany on Thursday. “NATO’s own defense can get by for now, but Russia, which has devoted its economy to war, may be ready to use military force against NATO within five years.”

Despite international efforts to end the war, Putin has signaled that Russia is willing to continue the war to achieve its goals. He warned Russia last week. Taking a key Ukrainian region “by force” unless Kiev’s troops withdraw willingly.

Central Bank of Russia on Friday announced The Belgian clearing house was suing Euroclear in the Moscow court for “compensation for the damages suffered by the Central Bank of Russia”.

“The actions of the Euroclear warehouse caused damage to the Central Bank of Russia due to the inability to manage cash and securities,” he said in a statement, according to Google’s translation. It was also stated that the case “is linked to the mechanisms of direct or indirect use of the Bank of Russia’s assets without the consent of the Bank of Russia, which are officially considered by the European Commission.”

Euroclear declined to comment and the Belgian government did not respond to a request for comment by the time this article went live.

Ukraine and its European allies are also scrambling to keep on their side U.S. President Donald Trump, whose administration wants a peace deal with both Moscow and Kiev.

While there is Russia While Trump publicly declares his “compatibility” with Washington, he lashes out at European leaders.

on wednesday, he said According to NBC News, he did not want to “waste time” discussing the peace plan with his European counterparts, adding that he had already exchanged “pretty harsh words” with officials in the region.

“Sometimes you have to let people fight, and sometimes you don’t,” he said.

Earlier this week, he claimed that Ukrainian President Volodymyr Zelenskyy had not read the US draft peace proposal to end the war, but that Russia was “happy with it”.

The proposal, originally drafted by the United States and Russia without any input from Ukraine, was modified from its original 28-point version, which called for Ukraine to give up territory in the eastern Donbas region and reduce the size of its army. But territorial concessions to Ukraine and security guarantees to Kiev remain sticking points in the peace plan, which Ukraine is reportedly under US pressure to accept before Christmas.

The White House said Thursday that the United States remains engaged in the peace process. But Press Secretary Karoline Leavitt told reporters that Trump was “extremely disappointed in both sides of this war” and “tired of meetings just to meet.”

Trump met with the leaders of Britain, Germany and France on Wednesday, and Leavitt said the president was “aware” of a new proposal sent by Ukrainian Zelenskyy.

At the press conference, Leavitt said about Trump, “He wants action, not more talk. He wants this war to end.” “The administration has spent more than 30 hours in meetings with Russians, Ukrainians and Europeans over the past few weeks.”

“If we think these meetings deserve someone on the United States’ time this weekend, then we will send a representative,” he added.

— CNBC’s Holly Ellyatt and Silvia Amaro contributed to this article.