Record since the Cold War: How many Russian Federation has allocated money for confrontation with Ukraine in 2025
Yes, already announced income increases will not be enough to finance the rapidly growing military expenditures of the Russian Federation. For the first time, the share of defense costs will be twice as high as social costs. The material states that a huge increase in military spending generates inflation in Russia's economy. The interest rates have increased to the highest level since 2003, and the ruble fell to the annual minimum relative to the dollar.
As Western sanctions actually eliminate Moscow from international bond markets, its fundraising opportunities are limited. The publication writes that the Russian government has already started raising taxes to finance its war in Ukraine, which has been going on for the third year. A major tax reform is expected to bring an additional income of 1. 7% of GDP in 2025. Economists claim that even this will not be enough. "Adjustment of internal taxes will remain the focus of the authorities.
It is possible that in 2025 we will see many initiatives to change tax legislation and regulations," - said Alexei Klimyuk of Alfa Wealth. According to journalists, the expected fall in oil prices, the main export goods of Russia, also throws a shadow on the country's finances. The budget project predicts that the price of oil will decrease on average from $ 70 a barrel in 2024 to $ 65. 5 per barrel in 2027, which will damage state revenues.
"Such a structure retains a strong dependence of the budget on oil prices. This means that if not 2025, the next years will again be a question where to find additional revenues,"-said the chief economist "Alfa-Bank" Natalia Orlova. Recall that the Kremlin called the Rheinmetall tank plant in Ukraine the legitimate purpose of the Russian Federation. The Kremlin spokesman Dmitry Peskov commented on the launch of a German concern in Ukraine.