U.S. President Donald Trump and Secretary of State Marco Rubio meet with Russian President Vladimir Putin to negotiate an end to the war in Ukraine on August 15, 2025 in Anchorage, Alaska.
Kevin Lamarque | Reuters
Russian President Vladimir Putin has enough capital to finance the war in Ukraine in the coming years despite mounting economic pressure, the country’s former central bank chief told CNBC on Friday.
“The Russian economy is approaching stagnation,” Sergei Alexashenko, a former deputy chairman of the Russian Central Bank, told CNBC’s “Europe Early Edition.”
Alexashenko said on Friday that the Bank of Russia expects the country’s economy to grow by just 0.9% this year, compared with 4.3% last year, and that “the economy is not looking good.”
But he added that with central banks gradually reducing inflation and various industries moving in the opposite direction, “the glass is less than half full.”
Asked if Putin had enough money to finance the war in Ukraine, Alexashenko said: “Unfortunately, yes.”
“Despite all the rumors, despite the growing deficit, despite the increasing borrowing by the finance minister, he has enough money to finance the war,” he told CNBC.
“I am confident that we will be able to finance the war for at least another two or three years, and maybe even longer,” he added.
Russia’s full-scale invasion of Ukraine began in early 2022, and the military is currently in its fourth winter of conflict.
Alexashenko’s comments came after NATO chief Mark Rutte issued a stark warning to allies that they were at grave risk of attack by Russian forces.
“We are Russia’s next target and we have already been harmed,” he said in a speech in Germany on Thursday. “For now, NATO is able to maintain its own defenses, but Russia has a war-oriented economy and could be ready to use military force against NATO within five years.”
Central bank files suit over freezing Russian assets
Despite international efforts to end the war, President Putin has indicated that he is willing to continue the war to achieve Russia’s objectives. Last week, he warned that Russia would seize key Ukrainian territory “by force” if Kiev forces did not withdraw voluntarily.
To increase economic pressure on the Kremlin, European officials have announced proposals to use frozen Russian assets to help rebuild Ukraine, a move Russian officials say amounts to justifying war.
On Friday, Russia’s central bank announced it would sue Belgian clearing house Euroclear in a Moscow court “seeking recovery of losses incurred by the Bank of Russia.”
“The actions of the Euroclear custodian harmed the Bank of Russia due to its inability to manage cash and securities,” the bank said in a statement, according to Google Translate. The newspaper said the case “also concerns mechanisms for the direct or indirect use of the Bank of Russia’s assets without its consent, which the European Commission is formally considering.”
Euroclear declined to comment, and the Belgian government had not responded to requests for comment at the time of publication.
President Trump “dissatisfied” as peace negotiations drag on
Ukraine and its European allies are also desperate to hold on to US President Donald Trump, whose administration wants peace deals with both Moscow and Kiev.
While Russia has publicly touted its “coordination” with the US government, President Trump has lashed out at European leaders.
He said Wednesday he did not want to “waste time” discussing a peace plan with European countries, adding that he had already exchanged “pretty strong words” with regional officials, according to NBC News.
“Sometimes you have to make people fight, and sometimes you don’t,” he says.
Earlier this week, he claimed that Ukrainian President Volodymyr Zelenskiy had not read the draft US peace proposal to end the war, but that Russia was “agreeing to it”.
The proposal, which was originally drafted by the United States and Russia without input from Ukraine, has reportedly been changed from its original 28-point version, which included a requirement for Ukraine to give up land in the eastern Donbas region and reduce the size of its military. However, Ukrainian land concessions and Kiev’s security remain a sticking point in the peace plan, with Ukraine reportedly under pressure from the US to agree before Christmas.
The White House announced Thursday that the United States remains involved in the peace process. But press secretary Caroline Levitt told reporters that Trump is “extremely dissatisfied with both sides of this war” and is “tired of meetings just to meet.”
Trump spoke by phone Wednesday with the leaders of Britain, Germany and France, and Levitt said the president was “aware” of the new proposal sent by Ukraine’s Zelensky.
“He doesn’t want any more dialogue. He wants action. He wants this war to end,” Levitt said of Trump at a news conference. “The administration has spent more than 30 hours in recent weeks alone meeting with Russia, Ukraine, and European countries.”
“If we determine that these meetings are appropriate for someone to attend this weekend U.S. time, we will send a representative,” she added.
—CNBC’s Holly Ellyatt and Silvia Amaro contributed to this article.
