After years of massacres in Ukraine, Russia is destroying its economy in order to continue these massacres! The military parades in Red Square are shrinking, interest rates, the symbol of an overheated economy, are rising, and more are on the agenda.
Although Putin, Russia's warlord, claims that the economy remains stable despite rapidly rising interest rates, it is undeniable that the ongoing war has dealt a fatal blow to the Russian economy. The structural problems of the Russian economy revealed from the very beginning that Russia could not afford this war. The economic effects of the war, which has lasted much longer than expected, and the sanctions Russia has faced have further dragged the economy down. From irresponsible government spending to manpower shortages, the spillover effects of the ongoing war could spell doom for Moscow.
Before the war, Russia relied on energy and raw material exports. The oil price crisis in 2014, Russia's dependence on imported goods and the pandemic have shaken the Russian economy, which has been unstable since Soviet times.
Moreover, the cost of years of modern warfare is not a bill Moscow can afford to pay. One of the best examples of this is Russia's near-zero ammunition stockpile during its military operations in Syria in 2015. In 2015, the cost of the air force operation alone amounted to around 4 million dollars a day. The bill for the 3-year long large-scale war in Ukraine is much bigger than Syria.
Russia's poor economic situation has also negatively affected the military. Looking at the military parades of the past years, it is clear that Russia does not have the storage and production capacity to strengthen its military. Defense spending accounts for 40% of Russia's expenditures.
The post-war sanctions also hit the Russian economy hard. Russia's exports have fallen dramatically. Russia must now sell oil and gas to other buyers at a fraction of the normal price. Russia's access to foreign currency has also been restricted by the sanctions, causing the Moscow Stock Exchange to suspend trading in Euros and US dollars. It is worth noting that Chinese banks have stopped lending to Russia since the war began.
The war has also decimated Russia's manpower. Russia has suffered more than 1 million casualties since the start of the war and has also emigrated more than 1 million people. Most of the emigrants were educated people and made a positive contribution to the functioning of the economy. With 73% of companies in Russia reporting labor shortages, the country's production capacity and growth rates are becoming extremely uncertain.
Putin, who has plunged the world into war and ruined the lives of millions of people, tries to project a strong image for Russia, but all his efforts are in vain. The Ukraine war revealed Russia's true colors: Russia suffered more than a million casualties in Ukraine, suffered the Prigozhin disgrace, had its Kursk territories occupied, lost Syria, which it had supported for years, severed all commercial and diplomatic ties with Europe and the US, lost the North Stream line, and gave NATO two important allies in Sweden and Finland.
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