Putin is ready to continue despite the suffering of the Russians: what can stop the war - Reuters
According to journalists, it will be difficult for the event to design a plan to virtually deprive Russia of oil income. It is reported that Russia has problems with the economy because Putin is investing more and more money in the war. The costs of defense, which is laid down in the budget of 10. 8 trillion rubles this year, have tripled since the beginning of a full -scale war. In this inflation in Russia is 7. 7%, there is also an acute shortage of labor in.
The publication writes that the Central Bank of the Russian Federation raised interest rates to 16% and stated that the official cost of borrowing will have to remain high for a "long period" to reduce inflation to a target indicator by 4%. The Government in Moscow has introduced control over the movement of capital to support the ruble. According to journalists, the Government of the Russian Federation will need to take fiscal measures to bring internal consumption in line with production.
In the first place, the list is likely to increase taxes focused on richer people and the company. Putin has already given this signal. Although such decisions will be unpopular among some economic entities, the Kremlin will not meet. The material states that Putin boasts that last year the growth of the Russian economy was 3. 6%. However, in fact the picture is somewhat different. The publication writes that the military economy does not produce goods that ordinary people can consume.
As the government directs most of the national income for the production of tanks and shells, consumer goods and services will be less money. Journalists stressed that the Kremlin managed to protect the Russians from the economic costs of war at the expense of the National Welfare Fund to finance the budget deficit. But this is unstable because the fund's liquid assets have fallen more than twice since the beginning of a full -scale invasion of Ukraine.
Also, the war is reported to harm Russia's medium -term prospects. Western sanctions deprive it of advanced technologies. The productivity of Putin dreams of increasing, the first year of the war fell by 3. 6%. Investments fell to 19. 7% of GDP in 2022 from 21. 4% in 2017. We will remind, the media also wrote what potential risks for the economy of the Russian Federation.