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March 29, 2023

No Money, Only War

No Money, Only War
Russian tanks abandoned by the Russian army in the retreat from Izyum. Ukrinform TV, Wikimedia Commons

Verstka journalists analyzed court decisions in different regions of Russia and found out that civil and military authorities have been blaming disruption of infrastructural and social projects on the "special military operation" (as Russian authorities call the war in Ukraine). In particular, financial problems have arisen in the Zabaykalsky Krai, Primorsky Krai, and Chukotka. 

According to Verstka:

  • In Zabaykalsky Krai there is not enough money to create a cattle burial site in the wake of an anthrax outbreak, nor for the purchase of crematory furnaces for two dozen rural settlements.
  • In Chukotka, the Ministry of Defense did not have enough money to equip the administrative building of the military commissariat with an automatic fire alarm.
  • In Primorsky Krai, a fire alarm system was supposed to be installed in a metal storage building, but the Ministry of Defense said that they could not do the work because of the "special military operation."

The lack of funds has also hit social projects. Authorities in Zabaykalsky Krai could not find funds for the overhaul of a local kindergarten building. Officials blamed the lack of money on the war and mobilization: "In 2022, the district budget was charged with providing support to close relatives of mobilized citizens, because of the special military operation in Ukraine."

This is not the first evidence that the war in Ukraine and sanctions have had a negative impact on the Russian economy. Earlier this year, authorities significantly reduced funding for the development of artificial intelligence technologies.

In addition, the expected deficit of the Russian budget will reach 3% this year, the Russian middle class (about 30% of the population) saw their real income drop 5%, and, for the Russian population as a whole, the drop in income has been 2.2%.

 

Tags: russia filegovernmentwar in ukraineeconomy

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