War against Ukraine significantly affected economy of Russia, - Financial Times
The war against Ukraine has had a significant impact on the Russian economy, raising domestic prices and forcing Moscow to allocate a third of its budget to military spending. According to the US Treasury, the country’s GDP would have been more than 5% higher had the Russian Federation not launched a full-scale invasion.
This is reported by Censor.NET with reference to the Financial Times.
According to Rachel Lingaas, chief sanctions economist at the US Treasury Department, Russia's economy would have grown by more than 5% if Russian dictator Vladimir Putin had not gone to war against Ukraine.
Lingaas noted that the country lags behind other energy exporters, including the United States.
According to her, the started war, sanctions, and Moscow's political reaction to the events "put the Russian economy under a significant economic burden."
According to the FT publication, in 2023 Moscow spent more than $100 billion on military purposes, or almost a third of its total spending.
The mainstay of the Russian economy - oil and gas revenues - has suffered this year, although there has been a slight recovery in recent months as oil prices have strengthened.
In addition, Western sanctions on oil trade in Russia did not have as great an impact as initially predicted, the publication notes.
Russia's invasion and occupation of parts of Ukraine is now "contributing to rapid cost growth, a devaluation of the ruble, rising inflation and a tightening of the labor market, reflecting the loss of labor" in its economy, Lingaas added.
