Putin Rejected Trump Peace Deal Amid Russia's Economic and Geopolitical Decline
Russian President Vladimir Putin rejected a peace deal offered by former U.S. President Donald Trump that would have rewarded Russia's aggression, split the US and Europe, and weakened Kyiv and NATO.
Since 2022, Russia's economy has sharply deteriorated. Oil and gas revenue dropped by 27% year-on-year, inflation stands at 8%, interest rates exceed 16%, the budget deficit is rising, and liquid sovereign wealth funds have substantially depleted. Foreign investment has plunged while state monopolies carry large debts. Import costs for strategic goods have surged approximately 122%.
The human and social costs of the conflict continue to rise. Casualties in the first eight months of 2025 alone exceed 280,000, bringing the total near one million. Frontline life expectancy has fallen to around 12 days, accompanied by reduced payouts to infantry volunteers.
Russia's energy sector faces increased pressure as refineries, pipelines, and illicit oil shipments come under attack. Companies such as Rosneft and Lukoil are struggling as Asian buyers avoid secondary US sanctions. Geopolitically, Moscow's influence is waning: Syria has shifted westward, Iran has launched attacks, Venezuela is seeking support, and relations with China have deteriorated. Putin appeared needy during a visit to India, where Russian oil faced a boycott.
A report by the London School of Economics titled Against the Clock highlights that although 20% of Russians have seen income gains, the majority suffer real income declines ranging from roughly 16% to 42%, indicating growing tensions within the elite and regime.
The article argues that Trump's interference prolongs the war and calls on Europe and NATO to provide more weapons, pursue reparations through seized Russian assets, enforce energy sanctions, and respond to sabotage and cyber-attacks in order to bring an end to Putin’s era.
