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.

  • eran_morad@lemmy.worldEnglish
    51·
    1 year 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·
      1 year 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.