Initially, Russia has largely weather the sanctions, circumventing economic restrictions through third-party countries and various loopholes. The situation appears to be shifting as Russia has faced mounting economic challenges over the past months, compounded by labor shortages and military spending-induced inflation that led to record interest rates.Putin insisted that Russia would continue to fight as long as necessary and would not compromise its interests. At the same time, the Russian president acknowledged the pressure on the economy caused by the war, Reuters reported, citing its undisclosed source.Putin was also dissatisfied with the decline in private investment due to the high cost of credit. During a meeting with Russian business leaders in December, the president chided the economic bloc's top officials, according to two sources.In 2025, Russia has increased defense spending to a post-Soviet record level of 6.3% of GDP, which is one-third of budget expenditures, causing inflation.The economic situation in Russia has pushed some of the Russian elite to seek a negotiated settlement to the war, according to two sources familiar with the Kremlin's views.Trump has yet to present a detailed plan for peace in Ukraine, despite campaigning on promises to put a swift end to the conflict.