Merz cited inflation of 7% and a 14% central bank rate as key indicators of the financial strain on the country. These factors, coupled with an increasingly large state deficit, suggest that the combined fiscal pressures have made the current scale of warfare unsustainable for Russia's domestic economy.
Wednesday, October 21, 2026
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German Chancellor Merz Says Russian Economy Hits Pain Threshold
War16 days ago
Falling revenues from oil and gas exports are limiting Moscow's ability to fund its military campaign over the long term, according to German Chancellor Merz. He stated that the Russian state has already reached its economic "pain threshold" and is no longer capable of sustaining the current war indefinitely.
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