“Moscow is burdened with a number of economic problems, and it may take some time to solve them.”, – WRITE: www.unian.ua
Moscow is burdened with a number of economic problems, and it may take some time to solve them.
The Russian economy will continue to deteriorate even after the end of the war against Ukraine / photo ua.depositphotos.comDuring three years since the full-scale invasion of the Russian Federation into Ukraine sanction pressure on the aggressor country has steadily increased. However, even after the end of the war against Ukraine, the state of the Russian economy may deteriorate, writes Business Insider.
This is partly due to the fact that Russia has depended on military expenditures to support its economy. Another reason is that Moscow is burdened with a number of economic problems, and they may take some time to solve, according to a new report of the Center for Analysis of European Policy. Senior researcher of the institution Oleksandr Kolandr states that even in the absence of hostilities, the military expenses of the aggressor country will remain high.
The Federal Budget of the Russian Federation for 2025 provides record expenses for the army – 13.5 trillion rubles. For comparison, last year, this amount was 10.8 trillion rubles. According to economists, such stimulation is largely responsible for Russia’s recent economic growth, which has increased by about 4%last year. However, other indicators of long -term prospects look weaker.
There is now a sharp shortage of employees in the Russian market.
“The combination of the demographic crisis, the outflow of brains and high demand from the defense industry and the army will press on the market, forcing the Kremlin to choose between the involvement of foreign workers with the risk of social dissatisfaction and a constant labor shortage,” the Kolander emphasized.
Due to the departure of educated Russians, the aggressor country began to lag behind competitors and in technological space, which can also affect the development of the Russian economy in the future.
The escape of the most educated Russian workers also led to Russia’s lag in technological space – another problem that, according to economists, can affect Moscow’s long -term growth.
“Russia remains technologically backward and dependent on high -tech imports. The budget for 2025, in which the costs of science, education and health care are sacrificed in favor of defense, illustrates this problem,” Kolader explained.
Western sanctions also play a significant role in this situation. In particular, the Russian Federation has fallen from some of its most important export goods – oil and gas. And the Kremlin expects that oil and gas revenues will continue to contract until 2027.
Sanctions against the Russian Federation: The latest newsPresident of Ukraine Volodymyr Zelensky put new sanctions of the National Security and Defense Council on February 5. Restrictions touched by the captains of the “shadow fleet” of the Russian Federation, as well as the abductors of the cultural heritage of Ukraine.
Earlier, Finnish Foreign Minister Elina Valtonen stated that cracks appear in the Russian economy. She urged the West to strengthen the sanction against the Russian Federation to give Ukraine the best situation for the peace agreement.
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