'Serious economic difficulties' Russia...a shaky prospect of victory

[Anchor]
The situation in Russia, which is at war with Ukraine, is not good.

In particular, the Russian economy is facing very serious challenges in every way.

There is even a prospect that it is difficult to win the war.

Reporter Kwon Young-hee reports.

[Reporter]
The Russian people's discontent is not the war with Ukraine, but the prices that have risen beyond marketability.

Over the past three months, Russia's inflation rate has reached 9%.

[Natalia Moscow Citizen: I want wages to rise as high as store prices. Everything is expensive. Eggs, bread, flour, sugar, salt, everything is expensive.]

[Citizen Andrei Moscow] Half of his salary is paid for food. Considering that 70% of ordinary people have mortgage loans, it's all difficult.]

The government is also aware of this and is struggling to raise interest rates, but it is not easy.

[Elvira Nabiullina / Governor of the Central Bank of Russia: Inflationary pressures remain. It's still higher than what's needed to get back to the target next year.

Russia's GDP shrank by 2% to 3% each year after harsh international sanctions in 2022, sending the economy into a tailspin.

It fell from $2.3 trillion in 2013 to $1.9 trillion in 10 years.

Analysts say Russia is no longer a superpower and could lose next year because of its economy.

Conscious of this, Russia plans to spend 190 trillion won, or 6.1 percent of its GDP, next year.

But next year is not easy either.

Saudi Arabia has hinted at an increase in production since December to boost its crude oil market share.

It is difficult to export natural gas due to European sanctions, and if oil prices fall due to Saudi Arabia's increase in production, it will be more difficult to secure Russia's finances.

Oil and gas provide up to 40% of Russia's national financial income.

[Alexey Miller / CEO of Gazprom, Russia: What is happening in the European gas market (after sanctions against Russia) is an artificial destruction of gas demand]

Russia still insists that a protracted war is in its favor, but time may not now be on Russia's side, which is suffering from severe economic difficulties.

I'm YTN's Kwon Younghee.

Video editing: Han Kyung-hee