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Russia still has enough funds to continue the war, but some cuts have already been made. Contract payments to soldiers are reportedly being reduced. This was stated on Espreso TV by economist Ivan Us, chief consultant at the Centre for Foreign Policy Studies of the National Institute for Strategic Studies.
"First of all, there are still accumulated reserves. Yes, they are small, but they still exist. Secondly, the Russian economy is functioning. Sanctions were imposed by Western countries, but not by the Global South. And they represent a significant portion of the global economy," he said. Us noted that the G7 currently accounts for 40% of the global economy.
"Russia’s normal relations with countries of the Global South allow it to keep functioning. But even though there’s still money to keep the war going somehow, we are now seeing cuts. It’s no secret that contract payments in Russia are being reduced. These are the first warning signs that big problems are coming soon," the economist concluded.
If soldiers’ salaries are cut, it is expected to lead to rebellion and disobedience in the Russian army.
Russian military personnel pay for repairs to their service vehicles with combat grenades.
This is evidenced by intercepted communications obtained by specialists from the Main Intelligence Directorate of the Ministry of Defense of Ukraine.
In a conversation intercepted by intelligence officers, a resident of the Bryansk region talks about the realities of commodity-money relations in Russia.
“They detained one guy in Voronok, paid him off. In short, they found grenades at home. He helped the soldiers repair the car, and instead of money, he took a grenade and something else,” she says.
According to the Russian woman, it is becoming increasingly dangerous to travel around the Briansk region due to the fighting. “A military vehicle was blown up on a dirt road. So now you shouldn’t even go into the forest,” she warns.
Russia is paying an extremely high price for its invasion of Ukraine. More than a million Russian soldiers have been killed or injured, the country’s economy is in freefall and Nato has expanded its presence along its eastern flank. Vladimir Putin had expected victory to be swift, but instead, three years on, Moscow is isolated.
The war is affecting every part of Russian life, with US defence officials estimating the war in Ukraine has so far cost the Kremlin more than $220bn – twice the size of its annual defence budget. Russia’s defence industry has also lost $10bn in arms sales.
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