The Russian government is preparing its citizens for an even greater decline in their standard of living due to the war that Vladimir Putin started against Ukraine.
The Russian government is apparently preparing the population for a decline in budget revenues and, accordingly, a decline in living standards, writes Tagesspiegel.
Although Russians are soon threatened with a decline in living standards, the Kremlin wants to maintain military investments.
Russian Finance Minister Anton Siluanov said during a meeting of the Finance Ministry that the tense economic situation on the oil market as a result of the ongoing war in Ukraine is forcing the country to “adapt its spending to new realities“. "Yes, we will have to be a little more modest with our demands in some respects if we want to achieve greater efficiency," he said.
Russia will see an overall decline in budget revenues this year due to lower oil prices and Western sanctions. Russia has no intention of ending the war, but it continues to cut spending on its own citizens.
At the same time, Russia's military spending in 2024 will amount to 149 billion US dollars, which is equivalent to 7.1 percent of gross domestic product. This is 38 percent more than in 2023.
The Kremlin intends to continue to prioritize payments to contractors involved in the war against Ukraine and investments in arms production.
Military and political experts even point out that Vladimir Putin's life depends on what happens in Ukraine. It is too late for him to stop the war, because it would mean the end of his regime, and possibly the elimination of the president.