War is expensive, and Russia is paying a heavy price every day.
The cost of its invasion of Ukraine is not just in lives lost and cities destroyed. It is also putting an enormous strain on the Russian economy.
The country is spending almost a billion dollars a day on the war, according to Ukrinform. Nearly half of its entire budget is now directed toward defense.
Kyrylo Budanov, head of Ukraine’s Main Intelligence Directorate, spoke about this in an interview with Ukrinform.
He described the war as a massive financial burden for Russia. He estimated that each day of fighting costs the country close to a billion dollars. This level of spending is unprecedented.
Budanov also pointed out that Russia’s economy is already feeling the pressure. Official reports show that 41% of the national budget is now allocated to defense.
To afford this, Russia has been forced to cut back on social programs, healthcare, and education. The impact on ordinary citizens is becoming more obvious.
Despite these economic problems, Russia is still managing to stay afloat. Budanov noted that as long as the country has oil, gas, metals, and other valuable resources, it will continue to balance its finances.
However, the long-term consequences could be severe.
Experts outside of Ukraine have also raised concerns. Craig Kennedy, a researcher at Harvard’s Center for Russian and Eurasian Studies, warned that Russia’s military spending is far beyond what its budget can handle.
He believes this could eventually lead to serious financial instability.
Reports suggest that Moscow is secretly funding almost half of its military expenses through debt.
Banks are being forced to give out loans under unfavorable conditions to keep war-related industries running.
This could lead to major problems for Russian corporations and financial institutions in the future.
The war is not only draining Russia’s economy. It is forcing the country to make difficult choices. For now, it continues to spend, but the financial strain is growing.
