Russia has significantly increased spending on the war against Ukraine. They already make up three-fifths of the state budget of the aggressor country, which threatens the existence of the Russian economy as such. Its collapse is already actively discussed by the world media.
“And this time it’s not diving into the fantasies of some experts, but analysis of closed figures of the federal budget of Muscovy“, Orest Sohar, chief editor of GLOBAL HAPPENINGS, said in his Telegram channel “Orestocracy”. He gives the most important calculations.
Bloomberg found that the Kremlin’s spending on the war grow by 43% of the officially planned. Yes, they laid for the war $65 billion out of $143 billion provided for the maintenance of the power bloc of the Russian Federation.
“This very littlebecause, according to Forbes, the “denazification of Ukraine” costs the Kremlin $12 billion every month. only $ 144 billion is needed for military operationsand this is without taking into account the resumption of losses of military equipment, the manufacture of new missiles, etc.,” comments Orest Sokhar.
It also follows from these calculations that $78 billion is spent on the FSB, FSO, the National Guard, the police and other security forces ($143 billion in total spending minus $65 billion on the war). In the same time gap between official and real spending often funded from secret budget lines that add up to 25% or $95 billion.
In general, the federal budget of the Russian Federation is $379.5 billion. cannot be less than $222 billion ($144 billion in war spending plus $78 billion in maintenance of the police-FSB regime). This includes only financing the basic needs of a totalitarian state: warfare and maintenance,” Orest Sohar calculated.
In other words, if the media gives the correct numbers, then it turns out that Russia spends three-fifths of its budget on war with Ukraine. At the same time, Russia’s revenues have declined, and off-budget “stash” is depleted. “Therefore, the burden on the official treasury is growing,” the report says.
Even more publications do not give specific calculations, but give a general assessment of the economic situation in the Russian Federation. For example, in WSJ they directly write that Russia’s economy begins to collapse.
“Despite Russia’s resilience in the short term, the long-term picture is grim: Moscow will be much more closed and overly dependent on China“, – the publication notes. It also emphasizes that the lack of state revenues in Russia points to a dilemma: it is increasingly difficult for Vladimir Putin to combine inflated military spending with social articles.
“We all expect victories at the front, but the economic war against the Russian Federation also brings its results, bringing our victory closer. Not a single serious analyst talks about the “collapse of the Muscovite economy in 2-3 weeks,” but at the same time, not a single conscious person does not predict the ability of the bunker regime to hold on for years. Iran and North Korea cannot be an argument here, since neither of them is waging a full-scale war,” concluded Orest Sohar.
As GLOBAL HAPPENINGS reported, according to the Office of the President of Ukraine, sanctions are already affecting Russia. Thus, in 2022, a deterioration in key macroeconomic indicators of the Russian Federation was recorded: a fall in GDP, an increase in inflation and unemployment, and a reduction in investment.
However, the OS notes, there is room for strengthening restrictions. The implementation of this may lead to the fact that 2023 will become a turning point in the economic impact on the aggressor country.
Source: Obozrevatel
I am a journalist who writes about economics and business. I have worked in the news industry for over 5 years, most recently as an author at Global Happenings. My work has focused on covering the economy news, and I have written extensively on topics such as unemployment rates, housing prices, and the financial crisis. I am also an avid reader and have been known to write about books that interest me.
