Russia’s out-of-control military spending. With spending on the war in Ukraine potentially accounting for 45% of Russia’s budget by the end of the year, what are the implications for the rest of the economy? — Novaya Gazeta Europe
novayagazeta.eu
The Russian economy has been profoundly affected by the war in Ukraine, with the 37% of national spending that currently goes on defence predicted to rise to as much as 45% by the year’s end. As well as contributing to the ruble’s continuing fall, the massive increase in military spending is creating wider problems for the country’s economy that risk repeating the mistakes of the past.

In the first six months of 2023, total budget expenditure rose to almost 15 trillion rubles (€142.3 billion), an increase of 2.5 trillion rubles (€23.7 billion) on the previous year, with defence spending responsible for almost the entire difference, economic analyst Boris Grozovsky says. The Russian government has simultaneously increased military spending while decreasing spending in other sectors, which is “why budget statistics are no longer being released,” Grozovsky added.

  • OwlPaste@lemmy.worldEnglish
    72·
    10 months ago

    Oil prices are high, sometimes they are still selling above sealing price. They are still making more thab enough money from oil and other resources sales to keep financing this war for a long time. Plus every year they get about a million conscripts. Its unfortunate that they are so big that a massive cluster fuck of a war is bot affecting them as much as we are led to believe.

    Compared to the west they had years and years of oil sales to build up a lot of capital to continue financing such wars.

    What we need is to boost ammunition production and provide more military aid/training to Ukrainians. Alot more than now. The front is huge, few tanks won’t make a weather there without being able to chunk through ammunition like theres no tomorrow. So ammunition first and more tanks/planes after.

    • MrMakabar@slrpnk.netEnglish
      11·
      10 months ago

      Russia has 7.3 million men between 20 and 30. So conscripting a million men is going to have a massive impact on the country. Especially since a lot of the eligable Russians have left Russia as soon as conscription was announced. Russia already has worker shortages due to that.

      Then Russia is mostly using old Soviet weapons. This means the arsenal is going down. As long as Ukraines losses in equipment are replaced that looks pretty decent.

      The big question is the politcal will to see this throu from the West. The Wests economy is much larger then that of Russia, so it can be financed with greater ease. However Ukraine has to deliver on destroying a lot of Russians.

      • eran_morad@lemmy.worldEnglish
        51·
        10 months ago

        The West (and her allies in the East, such as Japan, S. Korea, Australia, NZ, etc.) is getting an incredible deal on another 100 years of dominance over the Russia/China cabal. This costs the West a pittance in exchange for continued domination of the world order (and I believe that’s a good thing), along with economic dominance. Strategically, this is a master play organized by Biden, Scholz, et al. Only the right-wing degenerates could possibly pull the plug on Western support for Ukraine. Which is why they are the target of russian propaganda.

        • MrMakabar@slrpnk.netEnglish
          1·
          10 months ago

          China and Russia are not natural allies. China is not sending Russia weapons at least not that many. However China benefits a lot from this. It is able to buy oil and gas the US navy can not cut from Russia, is able to move its influence into Central Asia, the area of the world with the weakest natural Western influence and the West is looking at Ukraine rather then Taiwan.

          It is going to hurt Russia long term, but it also might make it a complete puppet of China.