President Vladimir Putin said on Wednesday that Russia could achieve the goals of what he calls Moscow's "special military operation" in Ukraine without damaging the economy by militarising it, Reuters reported. Speaking at an end-of-year conference of Russia's top military brass, Putin said Russia would improve its military forces steadily and calmly without undermining the quality of social services for the Russian people. Read more.

The rouble slumped to its weakest point in more than seven months against the dollar on Monday and was on course for its biggest single-day drop since July amid fears that sanctions on Russian oil will hit the country's export revenue, Reuters reported. Monday's drop came as Russian President Vladimir Putin visited Belarus, fanning fears in Kyiv that he intends to pressure his ex-Soviet ally to join a fresh ground offensive that would open a new front against Ukraine. The currency also lost 3.8% to trade at 71.71 against the euro , also a more than seven-month low.

Europe has been hit hard by the fallout from the war in Ukraine, putting its companies on the front line of what has become a war of economic attrition between the West and Russia that is playing out alongside the real war in Ukraine, the Wall Street Journal reported. The U.K. is suffering more than other big countries in Europe, economists say. Inflation is running in the double digits, higher than all of its Group of Seven industrialized peers with the exception of Italy; gross domestic product shrank 0.2% in the third quarter year-over-year, setting the U.K.

Ukraine's economy could shrink by 50% this year if Russia keeps attacking the national power grid and other critical infrastructure, Prime Minister Denys Shmyhal was quoted as saying on Tuesday, Reuters reported. Russia has launched a series of missile and drone strikes on Ukrainian energy facilities since October, causing power outages across the country. "The contraction of the Ukrainian economy is projected at the level of 35-40%," Interfax Ukraine news agency quoted Shmyhal as saying.

Russian commercial bank Uralsib said on Monday it had completed the acquisition of a portfolio of consumer loans from Citigroup Inc's Russian unit, as the major U.S. lender reduces its exposure to Russia on the way to a full exit from the country, Reuters reported. Neither bank has disclosed financial details of the deal. "The acquired portfolio includes unsecured consumer loans, which going forward will be serviced by Uralsib Bank from the moment of purchase," Uralsib said in a statement.

Russia's current account surplus more than doubled year-on-year to $225.7 billion in January-November from $108.6 billion, the central bank said on Friday, giving much-needed fiscal wriggle room as the country's economy heads into 2023 on shaky ground, Reuters reported. This year, Russia is on track to post a record high current account surplus after its imports of goods and services fell due to Western sanctions while globally high commodity prices boosted its export revenues.

With Russian missiles pounding apartment buildings, power plants, schools and roads, a glimmering vision of a reconstructed postwar Ukraine seems impossibly far off. But an urgent battle of ideas has already begun over how to manage what would be the most extensive rebuilding project in Europe since the end of World War II, the New York Times reported.

After a string of battlefield losses in Ukraine in recent months, President Vladimir Putin faces a big test at home: mobilizing Russia’s economy to feed the war effort, the Wall Street Journal reported. Russian officials have crisscrossed the country to increase production and replenish dwindling stockpiles of missiles and other munitions. State budget data from the Russian Ministry of Finance shows defense expenditures rising this year by around 30% compared with 2021 to around $78 billion and increasing further next year to around $82.5 billion.

Ongoing Russian attacks on Ukrainian civilian infrastructure have increased the cost to keep Ukraine's economy going next year, adding up to $1 billion a month to previous estimates of $3-$4 billion, the head of the International Monetary Fund told the Reuters. IMF Managing Director Kristalina Georgieva said she was confident that the European Union, United States and other international partners would continue to provide needed support for Ukraine.

German energy company Uniper said Wednesday it’s suing Gazprom for damages over natural gas that hasn’t been delivered since June, when the Russian supplier started reducing amounts to Germany, the Associated Press reported. Gas importer Uniper said that it has initiated proceedings against Gazprom Export at an international arbitration tribunal in Stockholm. It said the cost to replace gas that Russia failed to supply so far totals at least 11.6 billion euros ($12 billion) and that cost will continue to increase until the end of 2024.