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Schlagwort: Economy

Russia’s military spending exceeds its budget capabilities and could collapse the economy – expert

The Russian state has been pursuing a 2-track strategy to cover its mounting war costs, supplementing its highly scrutinized defense budget expenditures with funding from an off-budget defense financing scheme that is similar in scale but has been overlooked by analysts. Unlike its federal defense budget expenditures, which remain at sustainable levels, Russia’s off-budget funding scheme is proving much more problematic to sustain. This now poses a funding dilemma for Moscow that could weigh on its war calculus while providing Ukraine and its allies valuable, new negotiating leverage.

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Sergii Marchenko signed an agreement with the EU on the ULCM mechanism, which will create a legal framework for servicing and repayment of funds received by Ukraine under the G7 ERA initiative

Ukraine signed an Agreement on the establishment of the Ukraine Loan Cooperation Mechanism (ULCM), which will create a legal framework for servicing and repayment of funds received by Ukraine, up to €45 billion. The mechanism will allow the use of proceeds from frozen Russian assets to cover the principal amount of the loan raised from partners under the G7 ERA initiative, as well as interest and any other costs associated with the loan.

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Sanctions on Russia Hurt Neighbor So Much It Won’t Always Comply

Kazakhstan is drawing a new line in its enforcement of sanctions targeting Russia, vowing to put its own economic interests first as it also deepens trade ties with countries from Iran to China. The Central Asian nation “won’t blindly follow the sanctions” if they affect domestic companies that function as the main employers in their areas” – Bloomberg.

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