War against Ukraine
London: Russia’s military costs increase pressure on the economy
Russia plans to spend six percent of its GDP on defense next year. This will place increasing strain on the economy of the country ruled by Vladimir Putin, experts say. photo
© Ng Han Guan/AP/dpa
Next year, Russia plans to spend six percent of its gross domestic product on defense. According to experts, this will have a significant impact on the Russian economy.
According to British estimates, the massive increase in Russian government spending on defense will put a significant strain on the Russian economy. “Continuously increased military spending will most likely contribute to inflationary pressures Russia will contribute,” said the British Ministry of Defense. The increase in military spending will probably force the government to make difficult decisions about war financing – which will increase the pressure on companies.
The budget for 2024 provides for an increase of 68 percent for defense compared to the previous year. This increased spending in this area to six percent of gross domestic product, it said in London. “In contrast, spending on education and health will be frozen at 2023 levels, which represents a real spending cut due to inflation.”
The British ministry also pointed out that due to the high number of victims in the war of aggression against Ukraine, expenses for the care of injured soldiers and financial aid for relatives of those killed increased. According to British information, around 150,000 to 190,000 Russian soldiers have been killed or permanently wounded since the war began in February 2022.
The British Ministry of Defense has been publishing daily information on the course of the war since the beginning of the Russian war of aggression in Ukraine. Moscow accuses London of disinformation.