Good if true, however hard to trust a source which does not distinguise between percentage and percentage points.
metaldark on
> Putin has dismissed concerns that record defense spending is putting a strain on Russia’s economy, despite falling energy revenues and a ballooning budget deficit. He has instead argued that greater military outlays offer an opportunity to integrate defense and civilian production.
I guess the people in charge of the guns get to decide how much butter to make? Has that worked well in the past ?
SuperiorDraft on
When russia at some point out in the future choses to exit their “war economy” it’ll most likely be a financial bloodbath. Generations will pay on top of a struggling demographics.
Dacadey on
Russian here.
An expected result, as war is by far the most expensive thing a state can do. Russia, with very low debt levels and huge reserves, had a time reserve of around 3 years where war didn’t affect the economy much. But that reserve is running out, and the economic difficulties are ramping up.
And before people start saying “because of sanctions”:
Most sanctions, like turning Russia off from SWIFT (so that it would have more money inside) or limiting visas (so that high-level tech workers and scientists would keep working for the Russian economy and not leave the country, and so that Russia would also have more manpower), actually helped Russia preserve its economy. The were only a few sensible ones like oil price caps.
So while Russia can maintain the war effort longer via VAT raises, internal debt, and so on, the war is finally starting to affect its economy in a significant way
DramaticSimple4315 on
This is fake news! Listen to the far right shills: everything is going ok in mother russia. Mother russia can wage this war for antoher thousands years. Russki mir will go from berlin to vladivostok. Mother russia will subjegate decadent west and have it work for mother russia in the great eurasian imperium in which magalopolises will sprout everywhere from Baikal to Kamtchakta!
On a more serious note, sanctions are always castigated as inefficient and such, but they are a slow burn, that have to be used in conjunction with other methods. The decision to cap the price Russia could sell its oil has been a brillant one. The freeze of 300 Bn$ in Europe in an unbelievable own goal by Putin lackeys. The difficulty for russia to access replacement parts hampers significantly its ability to wage war. And when you add up the long term effect of these sanctions, the deliberate effort from Ukraine to strike the russian military complex, you end up in a situation where Russia barely hangs on financially. And is actually saved by Korean slaves, Iranian drones and Chinese barter.
Sanctions have not resulted in any death from starvation on Russia’s side, however they probably have saved thousands, if not hunderds of thousands of lives in Ukraine. So they are a win in any case for anyone remotely caring about the human race.
Let’s take a realist counterpoint stance on this: if you do not give a fuck about the health of democracy, freedom, the rule of law or climate change, you worry nonetheless about a revisionist and imperialist russia. In that sense, your very own interest, if Russia can”t win the war, and doesn’t want to end it, is to have it burn itself so that it takes years and years for her to recover after.
witness_smile on
Just in time for the next package of sanctions, then. Let’s finally agree to stop importing Russian oil.
SelectStarFromYou on
Not 2%, it’s 10%. From 20% to 22% is a 10% increase or a 2 percentage point increase. lol.
nousernamefuk on
Germany is also thinking about raising VAT so what? A Country in war need it more than a Country which is in Peace.
Desperate_Golf7634 on
Yeah, just let them fight forever. Two birds with one stone.
positivcheg on
All I can say is NOT ENOUGH.
positivcheg on
Sanctions don’t exist and can’t hurt you.
Derek-Dick on
Remember the VAT goes straight to the federal budget.
Some context: Russia’s budget deficit was 1.7% of GDP in 2024. Currently the budget deficit as a proportion in GDP is around 2.2% – the central bank target was for 1.7%
In Germany the budget deficit is expected to be 3.6-3.8% of GDP in 2025, in the UK the budget deficit hit 4.8% opf GDP in 2024 and is expected to hit 5% this year. France it is expected to be 5.4% this year after a deficit of 5.8% this year. In the US it is is 6.2%…
So, an alternate headline could be: “Despite sanctions and conflict, Russian deficit to GDP among the lowest in the G7″
>Putin has dismissed concerns that record defense spending is putting a strain on Russia’s economy, despite falling energy revenues and a ballooning budget deficit.
17 commenti
The sanctions are in effect.
Good if true, however hard to trust a source which does not distinguise between percentage and percentage points.
> Putin has dismissed concerns that record defense spending is putting a strain on Russia’s economy, despite falling energy revenues and a ballooning budget deficit. He has instead argued that greater military outlays offer an opportunity to integrate defense and civilian production.
I guess the people in charge of the guns get to decide how much butter to make? Has that worked well in the past ?
When russia at some point out in the future choses to exit their “war economy” it’ll most likely be a financial bloodbath. Generations will pay on top of a struggling demographics.
Russian here.
An expected result, as war is by far the most expensive thing a state can do. Russia, with very low debt levels and huge reserves, had a time reserve of around 3 years where war didn’t affect the economy much. But that reserve is running out, and the economic difficulties are ramping up.
And before people start saying “because of sanctions”:
Most sanctions, like turning Russia off from SWIFT (so that it would have more money inside) or limiting visas (so that high-level tech workers and scientists would keep working for the Russian economy and not leave the country, and so that Russia would also have more manpower), actually helped Russia preserve its economy. The were only a few sensible ones like oil price caps.
So while Russia can maintain the war effort longer via VAT raises, internal debt, and so on, the war is finally starting to affect its economy in a significant way
This is fake news! Listen to the far right shills: everything is going ok in mother russia. Mother russia can wage this war for antoher thousands years. Russki mir will go from berlin to vladivostok. Mother russia will subjegate decadent west and have it work for mother russia in the great eurasian imperium in which magalopolises will sprout everywhere from Baikal to Kamtchakta!
On a more serious note, sanctions are always castigated as inefficient and such, but they are a slow burn, that have to be used in conjunction with other methods. The decision to cap the price Russia could sell its oil has been a brillant one. The freeze of 300 Bn$ in Europe in an unbelievable own goal by Putin lackeys. The difficulty for russia to access replacement parts hampers significantly its ability to wage war. And when you add up the long term effect of these sanctions, the deliberate effort from Ukraine to strike the russian military complex, you end up in a situation where Russia barely hangs on financially. And is actually saved by Korean slaves, Iranian drones and Chinese barter.
Sanctions have not resulted in any death from starvation on Russia’s side, however they probably have saved thousands, if not hunderds of thousands of lives in Ukraine. So they are a win in any case for anyone remotely caring about the human race.
Let’s take a realist counterpoint stance on this: if you do not give a fuck about the health of democracy, freedom, the rule of law or climate change, you worry nonetheless about a revisionist and imperialist russia. In that sense, your very own interest, if Russia can”t win the war, and doesn’t want to end it, is to have it burn itself so that it takes years and years for her to recover after.
Just in time for the next package of sanctions, then. Let’s finally agree to stop importing Russian oil.
Not 2%, it’s 10%. From 20% to 22% is a 10% increase or a 2 percentage point increase. lol.
Germany is also thinking about raising VAT so what? A Country in war need it more than a Country which is in Peace.
Yeah, just let them fight forever. Two birds with one stone.
All I can say is NOT ENOUGH.
Sanctions don’t exist and can’t hurt you.
Remember the VAT goes straight to the federal budget.
See this YT video from The Researcher about how the Russian tax system works.
[https://www.youtube.com/watch?v=fc-ZvstkTpQ&t=471s](https://www.youtube.com/watch?v=fc-ZvstkTpQ&t=471s)
Some context: Russia’s budget deficit was 1.7% of GDP in 2024. Currently the budget deficit as a proportion in GDP is around 2.2% – the central bank target was for 1.7%
In Germany the budget deficit is expected to be 3.6-3.8% of GDP in 2025, in the UK the budget deficit hit 4.8% opf GDP in 2024 and is expected to hit 5% this year. France it is expected to be 5.4% this year after a deficit of 5.8% this year. In the US it is is 6.2%…
So, an alternate headline could be: “Despite sanctions and conflict, Russian deficit to GDP among the lowest in the G7″
[https://tradingeconomics.com/russia/government-budget](https://tradingeconomics.com/russia/government-budget)
[https://www.reuters.com/markets/europe/russias-seven-month-budget-deficit-exceeds-annual-target-2025-08-07/](https://www.reuters.com/markets/europe/russias-seven-month-budget-deficit-exceeds-annual-target-2025-08-07/)
>Putin has dismissed concerns that record defense spending is putting a strain on Russia’s economy, despite falling energy revenues and a ballooning budget deficit.
Excellent! Please keep thinking that way.
“Sanctions don´t work”
What’s another 2% on a 20% inflation?