With troops in Ukraine, Russia’s defence spending leaps 40%

1 min


157
96 shares, 157 points

(Reuters) – Russia’s defence spending was up nearly 40% in the first four months of the year, according to preliminary data released by the finance ministry on Wednesday, almost three months into Moscow’s large-scale military campaign in Ukraine.

Russia spent 1.7 trillion roubles ($26.4 billion) on defence between January and April, almost half the 3.5 trillion roubles, or 2.6% of GDP, budgeted for all of 2022.

The ministry had initially forecast a budget surplus of 1% of GDP, or 1.3 trillion roubles, for 2022, but now expects a deficit of at least 1.6 trillion roubles, allowing for support payouts to counter the effect of an unprecedented barrage of Western economic sanctions.

The government will use Russia’s National Wealth Fund (NWF), a rainy-day cushion built up from oil and gas revenues, to cover the deficit, and also to support the value of stocks and bonds, which have fallen sharply since Moscow sent tens of thousands of troops and heavy armour into Ukraine on Feb. 24.

Some of the NWF is invested in financial markets, and its value fell $20 billion between early February and April, to $155 billion, according to data released on Monday..

In April alone, Russia spent 628 billion roubles ($9.7 billion) on its military, up 128% on April 2021, helping to tip the monthly state budget into deficit for the first time this year.

The finance ministry declined to comment on the increase in defence spending.

Thousands of civilians have been killed in Ukraine and more than 14 million people have fled their homes in a conflict that Russia says was necessary to counter Western aggression and protect Russian-speakers from repression.

Ukraine says it is fighting an imperial-style land grab and that Moscow’s claims of aggressive nationalism and persecution of Russian-speakers are nonsense. ($1 = 64.4010 roubles)

(Reporting by Reuters; Editing by Kevin Liffey)

Source: KFGO


Like it? Share with your friends!

157
96 shares, 157 points

What's Your Reaction?

Cute Cute
16
Cute
Fun Fun
8
Fun
Hate Hate
2
Hate
Confused Confused
18
Confused
Fail Fail
10
Fail
Geeky Geeky
5
Geeky
Love Love
24
Love
OMG OMG
18
OMG
Choose A Format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Countdown
The Classic Internet Countdowns
Open List
Submit your own item and vote up for the best submission
Ranked List
Upvote or downvote to decide the best list item
Meme
Upload your own images to make custom memes
Video
Youtube, Vimeo or Vine Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format