Moscow cheers NATO crisis as the Ukraine war stifles Russia's economy, forcing companies to use 4-day weeks and lay off workers | Fortune
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Moscow cheers NATO crisis as the Ukraine war stifles Russia's economy, forcing companies to use 4-day weeks and lay off workers | Fortune
"President Donald Trump's feud with NATO over his plans to take over Greenland has precipitated an existential crisis for the alliance that Russia is celebrating. On Saturday, Trump announced tariffs targeting NATO countries that deployed troops to the semi-autonomous Danish territory, until a "Deal is reached for the Complete and Total purchase of Greenland." That drew cheers from Kirill Dmitriev, Russian Vladimir Putin's envoy for investment and economic cooperation. Meanwhile, the European Union is weighing options to retaliate."
"NATO has been a key supporter of Ukraine as it fights off Russia's invasion, which began nearly four years ago. And while Trump has previously sparked trade tension with Europe, NATO allies have helped maintain U.S. support for Kyiv, though he has often withheld it. The current tariff battle, however, threatens irreparable harm to the alliance, representing its worst schism in its nearly 80-year history."
""The Russian people are increasingly feeling the effects of the Kremlin's continued prioritization of the Russian defense industrial base," the Institute for the Study of War said in a recent analysis. Weapons makers and other suppliers are booming as the Kremlin funnels investments and loans to those industries. But the rest of the economy is suffering. For example, ISW pointed out that rising wages are fueling inflation as the war causes labor shortages while defense and civilian firms compete for workers."
President Donald Trump's tariffs targeting NATO countries that deploy troops to Greenland and insistence on buying Greenland have triggered a major rift within the alliance. Kirill Dmitriev, a Russian envoy, celebrated a perceived transatlantic collapse while the European Union considers retaliatory measures. NATO has underpinned support for Ukraine during Russia's invasion, and trade tensions now risk undermining that assistance. A diminished NATO response could ease economic and military pressure on Russia. Russia's economy shows slowing GDP growth after recent surges, with defense industries booming while broader economic sectors suffer from inflation, labor shortages, and resource shifts.
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