January 28th, 2025: Is Russia’s Economy Cracking? & Hamas Hostage Tragedy

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What are the latest sanctions against Russia?

Mike Baker 0:12
It's Tuesday, 28 January. Welcome to the President's Daily Brief. I'm Mike Baker, your eyes and ears on the world stage. Let's get briefed. Today, we're starting in Moscow and some bad news for President Vladimir Putin as the European Union extends its sanctions against Russia, raising fresh questions about the cracks that appear to be forming in Russia's economy. Later in the show, we'll return to the Middle East, where Hamas has announced that eight of the remaining 26 hostages set to be released as part of the ongoing ceasefire are dead. Plus, President Trump is reportedly considering an asylum deal with El Salvador, allowing the U.S. to deport migrants there, even if they're not Salvadorans.
Mike Baker 1:01
And finally, in today's back of the brief, the president fulfills a campaign promise with a new executive order reinstating service members discharged for refusing the COVID-19 vaccine. But first, today's PDB Spotlight. European leaders are putting the financial screws to Russian dictator Vladimir Putin, who is reportedly growing increasingly concerned over the fragile state of Russia's wartime economy.

How is the Russian economy affected by the war?

Mike Baker 1:29
The European Union voted Monday to renew its wide-ranging sanctions on Russia over the war in Ukraine, keeping existing sector-based bans on trade with Moscow intact, while also ensuring that more than $200 billion worth of seized Kremlin assets remain frozen. While most of the EU's 27 member countries were on board with the sanctions renewal, there were concerns that they could lapse before the January 31st renewal deadline over protests by Hungary, according to a report from Reuters. As a reminder, under EU regulations, all 27 member countries must unanimously vote to renew these restrictions every six months. But Hungarian leaders have been seeking assurances regarding their energy security ever since the war in Ukraine broke out. And by broke out, I mean when Vladimir Putin's military invaded and were blocking the latest sanctions renewal talks in an attempt to leverage energy concessions from Ukraine.
Mike Baker 2:31
Specifically, Hungary wanted EU leadership to persuade Ukraine to resume gas transits from Russia to Europe, claiming that EU sanctions on Russia had caused some $20 billion in financial damage to the Hungarian economy. Hungarian Prime Minister Viktor Orban, who, by the way, maintains a close relationship with Putin, had also requested that the EU consult with the Trump administration on the sanctions before moving forward, arguing it was time for a sanctions-free relationship between Europe and Russia. But President Trump, who has himself threatened the Putin regime with fresh sanctions over the war in Ukraine, did not back the Hungarian position, leaving Orban with little room to maneuver. Still, EU leadership offered an olive branch to Hungary, issuing a statement on Monday pledging to continue conversations on moving oil through Ukraine.
Mike Baker 3:26
The statement, which was reviewed by Reuters, said the EU's executive body was ready to involve Hungary and Slovakia in the process, and came after Ukrainian President Zelensky said that he was willing to sign a contract to move gas from Azerbaijan to Europe using Ukraine's existing pipeline infrastructure. The official pledge from the EU was enough to move the needle with Hungary, allowing the sanctions renewal to proceed. Kajikhalas, the EU's foreign policy chief, underscored the importance of maintaining maximum economic pressure on Russia, stating, "...this will continue to deprive Moscow of revenues to finance its war. Russia needs to pay for the damage that they are causing." Indeed, it's hard to overstate the economic decline that the war in Ukraine has caused in Russia. The Putin regime is currently grappling with persistently high inflation, labor shortages, and interest rates that are sitting at an historic high of 21%.
Mike Baker 4:29
Their manufacturing and services sectors are also struggling to stay afloat as costs skyrocket and consumer demand softens due to the soaring inflation, which was measured, frankly, at 9.5% last year. The sanctions from Europe and the U.S. have further strained Moscow's finances, isolating them from critical foreign markets. Russian exports to the U.S., for example, have

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