Russia economy meltdown as locals ‘stop buying clothes’

President Putin is facing economic hardship at home (Image: Getty )

Russians are starting to have to cut back on food, fuel and household goods as Vladimir Putin's invasion of Ukraine sends shockwaves through the economy. For years, the war in Ukraine, which the Kremlin has dubbed a "Special Military Operation", might have seemed a far-off problem for most Russians living in the world's largest country.

But now very real physical effects are being felt with increasing Ukrainian drone strikes and air raid alerts even in Moscow, and the public is starting to feel the war hitting their pockets too. Winter doesn't look like a joyous one for most Russian workers, with huge job cuts in the manufacturing, fossil fuel and transport industries.

There are also more food shortages and rising inflation means households are even struggling to purchase staples such as the humble potato. There are also reports shoppers are stopping buying clothes, with Elena, a company manager from Moscow, telling Bloomberg she can no longer afford pricey imports.

Russian women looking at food in the market (Image: Getty )

Bloomberg reports the Russian economy is so bad that some analysts believe Putin should take a peace deal as soon as possible. Speaking to the news site, Alexander Gabuev, Berlin-based director of the Carnegie Russia Eurasia Center, said: "Based on the overall economic indicators, it would be in Russia’s best interest to stop the war now."

However, Mr Gabuev added that despite the poor economic outlook, Russian was not quite at the "edge of the cliff" yet.

Inflation was around 6.8% for November and the average bill for weekly groceries has "more than doubled" in recent years. It's reported sales of pork, milk and rice dropped by eight to 10% this autumn, with X5 Group, the largest supermarket chain in Russia, reported income from sales dropping a massive 20%.

Denis, 40, a manager from a shop in central Russia, said: "The average bill for weekly grocery purchases has more than doubled in recent years."

Ordinary Russians are feeling the strain of the ongoing war in Ukraine (Image: Getty )

With more countries stopping buying Russian oil, revenues from the fossil fuel market dropped by a fifth from January to October this year, however several major countries, including Turkey, China and India, as well as countries in Europe, continue to buy Russian fuel.

Oleg Buklemishev, head of the Center for Economic Policy Research at Lomonosov Moscow State University, said: "The immunity of the Russian economy has been severely weakened. A systemic crisis may not occur in 2026, but a steady deterioration in economic conditions will continue."

Speaking about the war during an appearance in Kyrgyzstan on Thursday, Putin said Ukrainian forces have to pull back or be overrun by Russia’s bigger army.

He described US President Donald Trump’s peace plan as “a set of issues put forward for discussion” rather than a draft agreement.

“If Ukrainian troops withdraw from the territories they occupy, hostilities will cease. If they don’t withdraw, we will achieve this by force,” the Russian leader said.