Putin’s Positive Readout Following the Alaska Summit, While Western Propaganda Pushes the Meme that Russia Faces Economic Turmoil at Home

Let’s start with President Putin’s post-summit briefing of his economic and national security team on the Alaska meeting with President Trump:

Dear colleagues, good afternoon!

I have asked you to come together in order to inform you about the results of our visit, the visit of our delegation to the United States, to Alaska.

I would like to say right away that the visit was timely and very useful. We talked about almost all aspects of our cooperation, but above all, of course, we talked about a possible resolution of the Ukrainian crisis on a fair basis. And of course, we had the opportunity, which we took advantage of, to talk about the genesis and causes of this crisis. It is the elimination of these root causes that should be the basis for a settlement.

It has been a long time since we have directly negotiated at this level. I repeat, we had the opportunity to calmly and in detail reiterate our position. Of course, we respect the position of the American administration, which recognizes the need for an early end to hostilities. We also want to resolve all issues through peaceful means.

The conversation was very frank and informative, and I believe it brings us closer to the right solutions.

Putin addressed the same group of folks that he briefed last Thursday before heading to Alaska:

Mikhail Vladimirovich Mishustin – Chairman of the Government

Vyacheslav Viktorovich VOLODIN – Chairman of the State Duma

VAYNO Anton Eduardovich – Head of the Presidential Administration

Dmitry Anatolyevich MEDVEDEV – Deputy Chairman of the Security Council

Sergey Kuzhugetovich SHOIGU – Secretary of the Security Council

Denis Valentinovich Manturov – First Deputy Prime Minister

Alexey Alekseyevich GROMOV is the First Deputy Head of the Presidential Administration

Sergey Vladilenovich KIRIENKO is the First Deputy Head of the Presidential Administration

NOVAK Alexander Valentinovich – Deputy Prime Minister

Dmitry Sergeevich PESKOV – Deputy Head of the Presidential Administration – Presidential Press Secretary

MEDINSKY, Vladimir Rostislavovich – Assistant to the President

YURY VIKTOROVICH USHAKOV – Assistant to the President

Andrey Belousov – Minister of Defense

Sergey Viktorovich Lavrov – Minister of Foreign Affairs

Reshetnikov Maxim Gennadievich – Minister of Economic Development

Anton Germanovich SILUANOV – Minister of Finance

Nabiullina Elvira Sakhipzadovna – Chairman of the Central Bank

BORTNIKOV, Alexander Vasilyevich – Director of the Federal Security Service

Sergey Evgenievich Naryshkin – Director of the Foreign Intelligence Service

Valery Vasilyevich GERASIMOV – Chief of the General Staff of the Armed Forces of the Russian Federation – First Deputy Minister of Defense

Dmitriev Kirill Aleksandrovich is the Special Representative of the President for Investment and Economic Cooperation with Foreign Countries and the General Director of the Russian Direct Investment Fund

While President Putin appears content with the outcome of the summit, the desperation in the West — especially in Europe — is palpable. An old meme, which claims that Russia’s economy is in trouble, is once again circulating in an effort to persuade the Trump team that victory is achievable because the Russian economy is in trouble. Western press coverage since January describes the Russian economy as increasingly strained and distorted by the ongoing war in Ukraine, international sanctions, and rising internal pressures:

• Wartime Focus and Inflation: Russia has refocused its economy on military production, with large sums channeled to defense industries and recruitment. This has led to pockets of economic growth—especially in manufacturing and defense—but fueled high inflation (over 10%) and interest rates (peaking at 21% in October 2025).
• Growth Slowdown and Recession Risks: After a period of “overheated growth,” Russia’s economic expansion has slowed rapidly, with official forecasts for GDP growth around 1.4–2% and some experts warning of an impending recession. The IMF expects even lower growth, and Russia’s own Finance Ministry has reduced its economic outlook as oil revenues fall.
• Labor Market Distortions: The unemployment rate is very low (around 2.2–2.3%), but this is mostly due to war recruitment drawing men away from civilian jobs, causing labor shortages in critical sectors and fueling wage growth.
• Budget and Debt Pressures: Western outlets report a “fiscal crunch” due to soaring war-related expenditures and declining energy revenues. Russia’s budget deficit has widened to the highest level in decades, and state finances are increasingly dependent on oil and gas, which remain vulnerable to global price changes and sanctions.
• Social Strains and Regional Inequality: There are growing reports of companies behind on wage payments and regional governments cutting recruitment bonuses. Social spending is heavily skewed toward veterans and military needs, causing public discontent and risk of local instability.
• Sanctions and Chinese Dependence: Western analysts highlight how Russia faces deepening isolation from global trade, forcing greater reliance on China, which now exerts increased economic influence and benefits from favorable trade terms. The ruble has weakened, and Russia is portrayed as sliding toward subordinate economic partner status relative to China.
• Structural Weaknesses: The press emphasizes that high-tech and civilian industries are stagnating while low-productivity, labor-intensive sectors expand, raising concerns about reverse industrialization and long-term economic sustainability

But much of this is quite misleading. Did you notice the ridiculous claim that Russia is on a path to become China’s bitch? Or that Russia is on the cusp of a recession because the Russian Central Bank (RCB) took proactive steps starting in late 2024 to tacke inflation? I am not saying that everything is rosy in Russia, but its economic house is in much better shape than that of Germany, France and the UK, who reportedly want to continue to fund Ukraine’s war machine. Let’s look at the facts:

Russia’s current GDP, using Purchasing Power Parity (PPP), is estimated at $7.1 trillion, making it the fourth largest economy in the world by this metric, and larger than any single other European economy, according to IMF estimates for 2025.
In comparison:
• Germany: Germany remains the largest European economy in terms of nominal GDP but is slightly below Russia in PPP terms, according to recent reports.
• France: France’s GDP (PPP) for 2025 is forecast at $3.3 trillion, significantly less than Russia’s. Per capita, France’s GDP (PPP) is around $61,322 to $65,626.
• United Kingdom: The UK’s GDP (PPP) is estimated at around $3.7 trillion for 2025, also less than Russia’s PPP GDP.

As you can see, Russia surpasses France, Germany, and the UK in overall economic size. This PPP advantage for Russia reflects the lower cost of living and prices for goods and services within Russia, because PPP adjusts for these factors. That means the average Russian is not suffering economic pain, despite high interest rates. But Russia’s relative advantage does not stop there.

Russia’s debt-to-GDP ratio in 2025 is projected to be about 19% of its GDP (PPP), which remains markedly lower than those of major Western European economies. Here’s how Russia compares to Germany, France, and the UK:

Russia reports a very low debt load, helped by conservative fiscal policy and limited external borrowing, while Germany, France, and the UK have much higher ratios, reflecting larger welfare expenditures, legacy debts, and heavier government spending (especially post-pandemic). Russia’s fiscal profile is generally seen as more conservative—with less reliance on debt markets—compared to Western peers. This not only provides insulation against international financial shocks, it means that Russia has more depth and more financial tools to weather economic problems.

When a country’s debt-to-GDP ratio exceeds 100%, it signals that the total government debt is larger than the country’s annual economic output. The financial implications of this situation can be significant and include:
Reduced Economic Growth: High debt levels can act as a drag on economic growth. Studies show that when debt surpasses certain thresholds (often cited around 77-90%, though without a strict “magic” number), it can reduce GDP growth by crowding out private investment and increasing borrowing costs. For example, rising national debt in the U.S. is projected to reduce the country’s GDP substantially over the long term.
Higher Borrowing Costs and Risk of Default: The higher the debt-to-GDP ratio, the greater the risk perceived by lenders regarding the country’s ability to repay. This can lead to increased interest rates on government debt and greater borrowing expenses. In extreme cases, it could trigger defaults or financial panics.
Crowding Out Private Investment: Large government borrowing absorbs capital that might otherwise finance private sector investment, potentially retarding innovation, job creation, and economic dynamism.
Reduced Fiscal Space: Governments with high debt loads have less flexibility to respond to economic shocks or invest in growth-enhancing projects due to the burden of servicing debt interest.
Lower Wages and Job Losses: Rising debt can translate into fewer jobs, lower wages, and reduced economic opportunities over time as the government spends more on debt servicing rather than productive investments

What about employment? The Western media insists that Russia’s unemployment rate in 2025, which has reached an all-time low of 2.2% as of May and June, marking one of the lowest official rates worldwide and a significant decrease from previous years, is a clear indicator of big trouble ahead. And the Western media pushes this narrative, while ignoring the conditions in Germany, France and the UK. So let me help out. Here are the numbers:

• The unemployment rate in Germany is around 5.4% in 2025, slightly up from recent years due to slower economic growth.

• France’s unemployment rate is approximately 7.5% in 2025, reflecting ongoing labor market challenges and economic reforms.

• The UK’s unemployment rate stands near 4.1% in 2025, which is considered low by historical standards but higher than Russia’s current rate.

To summarize, Russia has low unemployment, inflation is declining and it has a decisively lower debt-to-GDP ratio than all of the major European economies. The UK and France are on an unsustainable economic path, especially if they can’t find some gullible suckers out their to continue buying their debt. Oh, did I mention, that the US debt-to-GDP ratio is around 125%? The US, France and the UK are living on borrowed time, err… I mean borrowed money. If the world is hit with a global financial crisis, Russia is in a far better position to weather the storm than the US and its NATO allies. Moreover, if the US decides to stop funding the war in Ukraine, the UK, France and Germany lack the financial muscle to prop up Zelensky and his band of thieves. I wonder if Trump and the Europeans will discuss that on Monday?