Russia faced a challenge for its war effort in 2025: the country temporarily lacks money, monetary reserves are exhausted before the end of the year, estimates a European economist.
Anders Åslund, a Swedish economist who is former member of the Atlantic Council, said the liquid reserves of the National Heritage Fund for Russia can be exhausted during this year’s fall.
This expresses disorders due to the country’s army efforts in 2025, he said, given Russia’s solution on his background of wealth in recent years.
The liquid reserves of the Wealth Fund were reduced to $ 117 billion in 2021 to 31 billion dollars at the end of November, said Åslund.
However, for its 2025 budget, Russia is on the right path to spend a record of $ 130. 5 billion in defense this year.
“However, the maximum critical shortage is the investment of the budget, because the new Liquid reserves of Russia deserve to be exhausted in the autumn of 2025,” Åslund wrote in an editorial for Project Syndicate that was published on Tuesday. “Budget discounts will be necessary. Meanwhile, the war economy may also require costs and rationing: former Soviet sins. Although the threat of a monetary turn of destiny increases, the in danger of Russia is about to raise serious restrictions In the serious restrictions on the Putin War.
The immediate fall in the background of Russian wealth in part motivated through Western sanctions, which prevented Russia from requested loan from other countries. The foreign debt of the country collapsed in the last decade, with a foreign loan of $ 729 billion in 2023 in around 293 billion dollars in September 2024, Åslund said.
Russia’s limited capacity to finance war also explains the bad news for the aptitude of its economy, which is at the height of a myriad problem.
Åslund The outbreak of inflation, the fall in the price of the currency of Russia and a serious shortage of personnel in the country, all the points that economists have warned can serve the long -term expansion customers for Russia.
“The Russian president, Vladimir Putin, boasts of the strength of his country’s economy, claiming that Western sanctions only became more powerful (although they are not easy in the same breath as they rise). In fact,” Stafflation ” – Inflation combined with minimal expansion: it is arriving in Russia, “said Åslund.
Other mavens have also issued dark forecasts for the Russian economy, and some point out that economic weakness can interfere with Russia’s ability to continue his war. Renaud Foucart, another European economist, said last year that Moscow did not seem to be to win or lose the war.
The Atlantic Council recently said that Russia’s economic disorders can end its clash with Ukraine in 2025.
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