The war machine unbalances the Russian economy

by time news

With a deficit due to the clouds, Russia is spending on defense and security a third of what enters. This is pointed out by media such as ‘The Moscow Times’, which estimates that of the 354,000 million euros that the Russian State received in 2022, close to 106,000 million euros they would be destined to feed the war machine to retain control of the occupied territories ofUkraine and maintain the fight to win the game in the Army of the Slavic country.

This has meant that today the budget deficit – the difference between what is entered and what is spent – of the Russian State is, according to data from the Administration itself, one of the greatest in recent history, stands at 42,000 million euros. A figure only below that of 2020, the year of the global covid-19 pandemic, when it was 52,000 million euros. In the same government statistics it is observed as the security spending since 2019 rose gradually from 230,000 million euros to 305,000 million in 2021. The presence of soldiers and military vehicles in border areas with Ukraine was already warned this year.

But while the Kremlin is devoting spending mainly to the Ukrainian front, there are territories in Russia that are clamoring for improved infrastructures, both inside and outside the cities. These deficiencies are especially noticeable in south of the country and Siberia. In big cities like Moscow or Saint Petersburg, the public transport and the roads they are like those of any other large city in the Old Continent. It is not the case ofNorth Ossetia, in the Caucasus. The Zarina, originally from this republic in the south of the country, says that transport in the region is poor. “You never know how long you will wait for it to arrive”, explain. The regional authorities “want to improve something”, but the deterioration can be seen in the “state of the marxutkes». These minibuses are practically the only transport available in some parts of Russia. In the case of Ossetia, the majority are old and poorly maintained.

The economic situation has also affected the pocket of Russian citizens, who have seen how the prices of many basic products have become more expensive. About 70% of ordinary Russians have experienced it economic difficulties in their day-to-day life, according to a recent survey by the Civil Society Research Center of the Russian Higher School of Economics.

The hen that lays the golden eggs

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The great wild card of the Eurasian country’s economy has been for decades theexport of hydrocarbons. Historically, Moscow has been the major supplier of most of the countries of Eastern and Central Europe, and stands out among these Germany, although since the beginning of the conflict with Ukraine many of these states have stopped importing Russian gas, with the notable exception of Hungary. On the contrary, in this time traffic has increased in countries such as India, Turkey and China, and Moscow has entered even more than in previous years. In 2022, the sale of petroli and natural gas represented, according to statistics from the same Government, 41.6% of its income, around 150,000 million euros, consolidating fossil fuels such as great fodder for the Russian war machine. Spending in 2021 and 2022 was 25% higher.

Russia portends difficulties in other business. It is, for example, the case of tourism According to data from the Association of Tour Operators, in 2022 only 200,000 foreigners they visited the country for leisure. On the other hand, in 2019, before the pandemic, the number of five million international tourists. The main reasons given are the closure of airspace – something that has made travel in the country more difficult and expensive– and the problems to pay for any product in Russia after yours Swift system disconnection in march This measure means that bank cards issued in Russia are unusable outside its borders and vice versa.

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