Vladimir Putin is caught in a vice of his own making
The Economist
February 19, 2026
AI-Generated Deep Dive Summary
Vladimir Putin’s ongoing conflict in Ukraine has reached a stalemate where neither side can achieve victory, yet the Russian president faces immense pressure to continue the war while fearing the consequences of peace. After four years of intense fighting, the war shows no signs of resolution, leaving Russia trapped in a cycle of economic strain and international isolation. This situation highlights Putin’s dilemma: he cannot win the conflict decisively, but ending it would undermine his authority and invite political backlash at home.
The war has severely impacted Russia’s economy, with sanctions from Western countries cutting off access to critical resources and technology. These restrictions have led to soaring inflation, a weaker ruble, and widespread economic instability. Domestically, Putin’s government struggles to maintain public support as the cost of living rises and opportunities for young people diminish, pushing many to seek work abroad. Internationally, Russia’s position has eroded, with dwindling alliances and increasing isolation on the global stage.
From a business perspective, this stalemate poses significant risks to global markets. The ongoing conflict has disrupted energy supplies, driven up fuel prices, and created uncertainty in supply chains. Western companies face tough decisions about maintaining operations in Russia while navigating sanctions and reputational risks. Meanwhile, Russian businesses struggle under financial restrictions, limiting their ability to compete on the global stage.
The situation underscores how the war has become a double-edged sword for Putin. While continuing the conflict keeps him in power by uniting Russians behind a common enemy, it also perpetuates economic hardship and international isolation. A swift end to the war could stabilize Russia’s economy and improve its standing globally, but Putin fears that peace would weaken his grip on power. This conundrum leaves both Russia and the world in limbo, with no clear resolution in sight.
Ultimately, the conflict highlights the delicate balance of politics, economics, and international relations in modern warfare. For businesses and investors, this means navigating a complex landscape of shifting alliances, economic instability, and unpredictable global markets. As the war drags on, its impact on the global economy and international relations will continue to shape the business environment for years to come.
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Originally published on The Economist on 2/19/2026