Meanwhile, French morale had been sapped by prolonged British blockades, defeats in North America and India, and a lack of progress in the Rhineland. After Russia's about-face and Sweden's withdrawal, King Louis realised that France was unlikely to gain its promised reward of the Austrian Netherlands. Austria was virtually bankrupt, and without French subsidies Maria Theresa could not afford a new invasion of Silesia; with France similarly exhausted, Louis was no longer willing to finance his ally's war. Since France had never formally declared war on Prussia, he agreed to a ceasefire with Frederick and evacuated Prussia's territories in the Rhineland, ending France's involvement in the war in Germany.