Reports suggest Russian President Vladimir Putin is apprehensive about Russia’s economic outlook, particularly given President Trump’s return to office. According to Reuters, citing five sources, Trump’s stated aim to end the Ukraine war is exacerbating Putin’s concerns.

Trump’s campaign platform included ending global conflicts, including the Russia-Ukraine war, initiated by Putin’s 2022 invasion.

“I really do have a lot of confidence in his [Trump’s] ability to actually get to a position where this war is actually over,” Lt. Gen. Keith Kellogg, Trump’s nominee for envoy to Ukraine & Russia, stated to “.”

Despite international sanctions, Russia’s economy has benefited from its oil, gas, and mineral exports. However, Reuters reports that labor shortages and high interest rates are straining the economy. These economic challenges have reportedly prompted Russia’s elite to favor a negotiated settlement in Ukraine, according to two sources cited by Reuters.

“There are problems, but unfortunately, problems are now the companions of almost all countries of the world,” Kremlin spokesperson Dmitry Peskov told Reuters. “The situation is assessed as stable, and there is a margin of safety.”

In the same Reuters interview, Peskov acknowledged “problematic factors” in the Russian economy but asserted that Russia could meet “all military requirements incrementally.”

Last month, Putin indicated a willingness to compromise on Ukraine in potential talks with then President-elect Trump to end the war, stating he had no preconditions for negotiations with Ukrainian authorities.

“We have always said that we are ready for negotiations and compromises,” Putin stated, following claims that Russian forces were making progress across the entire front towards achieving their primary objectives in Ukraine.

“In my opinion, soon there will be no one left who wants to fight. We are ready, but the other side needs to be ready for both negotiations and compromises.”

Anticipating potential ramifications from Trump’s return, Putin has taken significant foreign policy steps, including strengthening ties with Iran and China. On January 21st, shortly after Trump’s inauguration, Putin and Chinese President Xi Jinping pledged to “deepen strategic coordination.”

The recent signing of a partnership pact between Russia and Iran has raised concerns among the U.S. and its allies. Russian Foreign Minister Sergei Lavrov asserted that the treaty was “not directed against anyone,” drawing a parallel to Russia’s 2024 agreement with North Korea.