Putin Signals Willingness to Mend US Ties as Russian Economy Feels Strain

Russian President Vladimir Putin, speaking at the 22nd annual meeting of the Valdai Discussion Club on October 2, stated that restoring comprehensive relations with the United States is in Russia's national interest.

In a speech that struck a conciliatory tone, Mr Putin noted that the current US administration has been forthright in articulating its interests, which he described as a rational choice, adding that Russia 'likewise reserves the right to act in accordance with its national interests.' He also indicated Russia's willingness to maintain stable supplies of uranium to the United States.

These overtures come as the Russian economy faces sustained pressure. Data from the summer of 2025 shows Russia's budget deficit has reached 4.2 trillion roubles, accounting for 1.9% of its GDP. Furthermore, July's year-on-year GDP growth was a mere 0.4%. Affected by low international oil prices and Western sanctions, Russia's oil and gas revenues in September are projected to decline by 23% compared to the same period last year.

Analysts suggest Mr Putin's remarks aim to alleviate this economic pressure by improving relations with the US, potentially creating favourable conditions for negotiations concerning the war in Ukraine. His specific mention of uranium supplies indicates that energy cooperation could be pursued as a potential breakthrough to ease tensions.

US Continues Military Support for Ukraine

Also on October 2, Ukrainian President Volodymyr Zelensky held intensive meetings with European leaders in Denmark, seeking security guarantees for Ukraine and urging the EU to swiftly implement a 19th round of sanctions against Russia.

Meanwhile, the United States continues its military support for Ukraine. The Trump administration has not only announced plans to supply Ukraine with Tomahawk cruise missiles-weapons capable of striking Moscow-but was also reported to be providing intelligence for Ukrainian long-range attacks on Russian energy infrastructure.

Ahead of a political community summit, diverging views within Europe were exposed. Polish Prime Minister Donald Tusk stated that it was clear Hungarian Prime Minister Viktor Orbán 'does not stand with Poland, NATO, or Europe' in the conflict. Mr Orbán countered that Europe's greatest current threat is 'economic stagnation and declining competitiveness', not Russia. He emphasised that whether measured by population, economy, or military spending, 'the EU is stronger than Russia'.

Ukrainian Strikes Reportedly Hit Russian Facilities

In a separate development on October 4, the General Staff of the Armed Forces of Ukraine reported that its forces had struck the Kirishi Petrochemical Plant in Russia's Leningrad Oblast. The statement reported explosions and fires at the site, with the extent of damage still being verified. The refinery is one of Russia's largest oil processing facilities, with an annual crude oil processing capacity of 18.4 million tons.

Additional military actions were reported by Ukrainian forces. A small missile boat, the 'Buyan-M', was said to be hit in the Onega Lake area of Russia's Republic of Karelia, with damage being assessed. In Kursk Oblast, Ukrainian forces reported striking an 'Accordion' radar station and a transport-loading vehicle for the 'Iskander' tactical missile system. The command post of Russia's 8th Army Group in the Donetsk region was also reported hit, with specific results being verified.