The Duran
March 28, 2026 · 7 min read
Russia Recalibrates After Trump's Iran War
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Key Takeaways
- 1Since December's Valdai attack, Russia has undergone a significant political and economic recalibration that extends far beyond military strategy.
- 2The most immediate concern facing Russian leadership is an unexpected economic contraction.
- 3The root cause of this economic decline lies squarely with monetary policy decisions made by Central Bank Governor Elvira Nabiullina.
- 4While inflation has since declined to around 5%, Nabiullina's cautious approach to rate cuts has maintained real interest rates at approximately 10%.
- 5Putin's response to these economic challenges was evident in his recent address to Russian industrialists and business leaders.
Overview
Since December's Valdai attack, Russia has undergone a significant political and economic recalibration that extends far beyond military strategy. The convergence of domestic economic pressures, the ongoing conflict with Iran, and shifting diplomatic dynamics has created a complex landscape that the Kremlin is still navigating.
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