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.

  • MrMakabar@slrpnk.netEnglish
    5·
    1 year ago

    Parts of a lot of Russian weapons are of Western origin. That is stuff designed for civilian use, but can be used in weapons as well. For example GDS chips are used in smartphones, but also can be used in drones. That is the kind of stuff Russia needs hard money for. Then you have machining tools and similar products as well, which can be used to make weapons.

    At the same time it enables Russia to focus its production on military products, if it can use hard currency for civilan goods.

    • agarorn@feddit.deEnglish
      1·
      1 year ago

      Shouldn’t these thing fall under one oft the 11(?) sanctions packs we put on Russia so far?

      • MrMakabar@slrpnk.netEnglish
        1·
        1 year ago

        Just as an example, some of the Western chips found in Russian weapons are also installed in dish washers. You can buy them online without anybody really looking into it and have them delivered to say Kazhkhstan and then transport them into Russia. It is basicly impossible to enforce, as anybody can buy them with such ease.