Putin's military struggles despite high spending and corruption

A study by the Kyiv School of Economics reveals that much of Russia's military spending has been wasted due to corruption and inefficiencies. Although Russian President Vladimir Putin pledged a limited ceasefire in Ukraine after a phone call with U.S. President Donald Trump, discussions about easing sanctions on Russia should not take place, according to the think tank. The Kyiv School of Economics warns that relaxing sanctions could revive Putin's military capabilities, which are currently hindered by labor shortages and supply chain issues. Despite increasing military spending—rising to $112 billion in 2024—Russia still struggles to effectively equip its forces due to ongoing sanctions and a collapse in arms exports. Russia’s defense budget saw a significant rise, with spending hitting $142 billion this year, accounting for nearly one-third of government spending. However, the report indicates that this high spending does not guarantee Russia's military effectiveness, as the country faces challenges like rising costs and a lack of advanced technology. While Russia has sought closer economic ties with the U.S., especially in rare earth minerals, experts warn that easing sanctions would empower Putin's military efforts. They emphasize the importance of maintaining current sanctions, which have significantly harmed Russia's military industrial complex. Future talks between U.S. and Russian officials are set for Sunday in Saudi Arabia. While easing sanctions is not expected to be on the agenda, discussions may include a maritime ceasefire and energy ties.