Almost a year after the start of the Russian invasion of Ukraine, the economic aspect (in the country that sold most of the energy to Europe), since It is taking its toll on Vladimir Putin, who assures that for the army “there are no financing limitations”, as revealed by CNN.
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The war has cost Russia to enter a deficit of 47 billion dollars, which, from within the government, indicate that it is due to social programs. However, analysts say that the economic decline is due more to war than anything else.
We have no limits in terms of financing. The Government gives the Army everything it asks for
“We have no limits in terms of funding. The Government gives the Army everything it asks for,” said Russian President Vladimir Putin.
Not only Ukraine, which with its alliances with the West, has improved its equipment and capacity for military action, Russia in recent months of constant war as well he has invested large sums of money to improve his arsenal. Among the Russian Army’s requests to the government are high-tech tanks, drones, military ships loaded with hypersonic missiles, and lots of ammunition, more than any other country could spend.
Russia this year increased its spending on defense and national security, while profits from the sale of oil and gas were reduced compared to previous years. By 2023, defense spending increased 6 percent, but national security spending increased 58 percent, in contrast to 2022, which was only 20 percent.
However, the aspect that represents a major problem for the Putin government is the income cut from the sale of oil and gas, which was reduced by around 30 percent. This means that other economic obligations of the State will be cut to maintain the income of money for national security. In other words, war.
Among the sectors that will be more “neglected” by the Government will be highways, agriculture and health. “Money is not infinite. And I think Putin understands it better than anyone,” explains Russian economist Elina Ribakova, who added that Russia has already gone through fiscal problems in the 1990s, as well as explaining that Despite the economic deficit, the country maintains large economic reserves after years of surplus, which would indicate that the country has around 300,000 million dollars in reserves, which would prevent them from falling into a financial crisis.
SANTIAGO PINZON GIRALDO
International writing.
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