We at the Anti-Imperial Block of Nations are monitoring developments in the Russian economy and budget. There is good news.
Back in March, we wrote about the problems that may arise: https://www.facebook.com/share/p/1BL8zipn7d/
Now, they are finally showing concrete results for the Russian economy.
And you don’t have to be a great economist to predict this. Their problems on the surface are derived solely from Russian aggression.
We were accurate in predicting how Putin would deal with the lack of money for the war. Ruble issuance is the easiest way. And now, we are stating it. They are simply printing money. September has just begun and we already have a record. According to open data, 850 billion rubles have been printed since the beginning of September.
This accelerates inflation. Plus, expensive loans for the economy. The Central Bank rate is at a high level of 17%. Plus, there is no access to international financial markets, labour shortages and sanctions… Also, Ukrainian drone strikes raise the price of fuel due to the created deficit.
The Russian authorities are fighting inflation in an original way. There have been reports of interference in the exchange trading of petroleum products, and the Russian prosecutor’s office is massively interfering in pricing in the food production sector. The Russian prosecutor general boasts in the local media that he has conducted almost 5,000 inspections of production facilities and has issued regulations on the need to reduce prices.
At the same time, businesses are being expropriated in Russia. Their foreign owners, despite being Russians, are particularly affected. Russian businessmen interviewed complain about a significant deterioration in the conditions for doing business.
Everyone was waiting for the draft budget of the Russian Federation for next year. Maybe there will be some relief there? Although it is not there yet, insiders have already written about the main “improvements”. Increase in taxes, reduction of tax benefits (especially for agriculture, the coal industry and oil companies), hidden deficit, reduction of development spending to maintain a high level of military spending, and reduction of funding for the regions. No, everything is predicted, plus an increase in taxes. Europe was once the largest market for energy crops, and gas stations will continue to reduce purchases. China and India will not pull out and compensate for the losses. Therefore, the main source of Rosbudget – revenues from oil and gas – will continue to decline.
So international sanctions and actions of the Russian authorities are detrimental to the economy and its ability to wage war. Putin’s whole hope is to quarrel with our allies and destroy the global front of support for Ukraine. We need to be patient!
