Politico learned why Putin decided to negotiate peace in Ukraine.

Putin may be seeking peaceful ways due to financial problems

According to Agatha Demare, a political researcher at the European Council on Foreign Relations, Russian President Vladimir Putin may resolve the conflict in Ukraine due to financial problems. As a result of sanctions, Russia's economy is facing difficulties, and Moscow is struggling to find funds to finance the war. The reserves of the National Wealth Fund have decreased by 60%. If the situation does not change, Moscow may find itself in a difficult financial position, threatening bankruptcy and the collapse of the economy. Therefore, Putin may be looking for ways out of the conflict through negotiations with the U.S., particularly by easing sanctions or temporarily halting the war for financial respite.

Problems are also affecting Russian banks, which have to compete with the Kremlin in issuing loans and bonds. The reserves of the National Wealth Fund are dwindling, and the loss of these funds could lead to a financial crisis. The Kremlin will find it difficult to support the banking sector, and the Russian economy may feel serious consequences. The country currently has a significant budget deficit, which could lead to bankruptcy. Therefore, Putin may be considering opportunities to exit the conflict through negotiations with the U.S., which would help avoid financial collapse.