Putin’s Approval Ratings Plummet as Russia Faces Record Budget Deficit and Economic Crisis.

Mounting Economic Pressure on Russia

According to UATV: Russia is experiencing escalating economic strain driven by Ukrainian military strikes and sweeping international sanctions. This pressure is eroding President Vladimir Putin’s popularity and fueling growing social unrest among the population. Recent polling reveals that 55% of respondents report predominantly gloomy moods in their social circles—a level of anxiety not seen since the autumn 2022 mobilization.

Shifts in War Support and Economic Woes

Public backing for continuing the war in Ukraine has dropped sharply, with only 9% now supporting the campaign. Between June 22 and 28, Putin’s job approval rating fell by 3.5 points, signaling rising public discontent. The economic outlook remains bleak: Russia’s federal budget deficit has surpassed 6 trillion rubles, while total household debt to banks hit a record 45 trillion rubles.

The banking sector is also under severe stress. Microfinance institutions report that 34% of their loan portfolios are over 90 days past due. In the first half of 2023, Russia’s banking liquidity deficit tripled from $8 billion to $24 billion.

Expert Vladimir Milov noted, 'problem loans in banks, non-payments by Russians to financial organizations, and requests to refinance microloans with cash.'

The situation across the country remains tense. Observers say 'the situation is out of control, and the economic consequences of the war are gradually destroying the illusion of stability in Putin’s system.' Already, most available funds in Russian banks are being forced into domestic bonds, highlighting severely limited economic growth opportunities. This analysis suggests Russia is confronting serious challenges that could have far-reaching implications for both society and the economy.

Rising economic pressure on Russia—driven by sanctions and military conflict—points to potential destabilization of the domestic political landscape. The decline in Putin’s support and high levels of social tension indicate that the population is becoming less resilient to the hardships caused by war and economic turmoil. This could trigger shifts in the country’s political future.