“The Kremlin is hiding the real state of the Russian economy through information operations – ISW January 23, 05:49 Share: On January 22, Vladimir Putin said that 2024 was a “strong” year for the Russian economy (Photo: Russian Defense Ministry/Handout via REUTERS) Analysts at the Institute for the Study of War ( ISW) claim that the Russian authorities launched an information campaign aimed at creating a false impression about the well-being of the Russian economy, despite presence of serious macroeconomic problems”, — write on: ua.news
On January 22, Vladimir Putin said that 2024 was a “strong” year for the Russian economy (Photo: Russian Defense Ministry/Handout via REUTERS)
Analysts of the Institute for the Study of War(ISW) claim that the Russian authorities launched an information campaign aimed at creating a false impression about the well-being of the Russian economy, despite the presence of serious macroeconomic problems, which are exacerbated by the costs of the war against Ukraine.
This is stated in the ISW analysis.
On January 22, Vladimir Putin announced that 2024 was the year “strong” for the Russian economy. He emphasized that the budget deficit was a manageable 1.7%, and non-oil and gas revenues increased by 26%, reaching 25.6 trillion rubles (about $257.9 billion). He also announced a 9.5% increase in military and insurance pensions in response to rising inflation.
Against the background of these statements, Bloomberg reported that the Ministry of Finance of the Russian Federation predicts further economic growth and record budget revenues for December 2024 — more than 4 trillion rubles ($40 billion), which is 28% more than a year earlier.
However, ISW points out that the official figures do not reflect the real economic problems:
- excessive defense spending,
- high inflation,
- growing budget deficit,
- weakening of the National Welfare Fund.
Analysts emphasize that Russia is facing a labor shortage, a demographic crisis, a reduction in savings, rising interest rates and a decline in production capacity.
ISW conclusions for January 22:
- The Kremlin is trying to hide real economic difficulties with the help of an information operation.
- Russia continues to strengthen the personnel reserve through the All-Russian Cossack Society and the creation of a prepared reserve to prevent the negative consequences of a possible new mobilization draft.
- By mid-March 2025, North Korea will send a new military contingent to Russia, which will support the intensity of attacks in the Kursk region, but is unlikely to significantly change the situation.
- Russian military bloggers are worried about the suspension of Russian investments in the Syrian port of Tartus against the background of unclear prospects for the Russian military presence in Syria.
- State media of the Russian Federation reported on the possible restoration of Russian gas supplies to Transnistria, despite the discussion of alternative sources of gas.
- Ukrainian troops regained lost positions near Toretsk.
- Russian troops advanced in the areas of Chasovoy Yar, Toretsk, Pokrovsk, Kurakhovo and Velika Novosilka.
- Russia and Uzbekistan deepen military cooperation.