Russia spent a large share of its annual defence budget in the first weeks of 2023, according to a source in the Ukrainian intelligence community, Ukrainian outlet Glavkom reported on February 23, 2023.
35% by mid-February
According to the claim, publicised by Oleksandr Danylyuk, head of the Centre for Defence Reforms, the Russian government had used 35% of its annual budget for the defence sector by mid-February. The report’s headline said “almost half” had been spent in the first two months, making the figures inconsistent.
Social spending at risk
To keep financing the war, Russia would likely have to cut other spending, mainly on social programmes, which could reduce public support for the war ahead of the 2024 presidential election, the report said.
It suggested that Moscow lacked confidence in its military prospects and might be looking for an opportunity to freeze the conflict, at least temporarily, because of limited resources, citing Russian Foreign Ministry statements about achieving the goals of its “special military operation” through political and diplomatic means.
Growing deficit
Russia ended 2022 with a budget deficit of 3.3 trillion roubles, and the deficit in January 2023 alone reached 1.8 trillion roubles, as oil and gas revenues fell under Western sanctions and the EU’s embargo on Russian oil while military spending soared.
The intelligence claims could not be independently verified.
Sources
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