A recent analysis by the Re:Russia project reveals staggering figures related to Russian military expenditures. From July 2023 to June 2024, payments to Russian military personnel involved in the Ukraine conflict, along with compensation to the wounded and families of fallen soldiers, are estimated to reach between 2.75 and 3 trillion rubles (US$31.2 – US$34.0 billion).
This substantial sum comprises approximately 1.55-1.8 trillion rubles (US$1.8 – US$2.0 billion) in monthly wages and contract signing bonuses for active military personnel. An additional 1.2 trillion rubles (US$1.4 billion) is allocated for injury, disability, and death compensations.
To put these figures into perspective, the total amount represents 1.4-1.6% of Russia’s projected GDP for 2024. It also accounts for 7.5-8.2% of all federal budget expenditures for the current year and 3.4-3.7% of Russian consumer spending in 2023.
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The study highlights the significant economic impact of these military-related payments. Over the 12-month period examined, total consumer spending in Russia increased by about 8 trillion rubles (US$90.8 billion), while bank deposits grew by roughly 4.5 trillion rubles (US$41 billion). The researchers note that income from military service and related compensations plays a crucial role in maintaining high rates of consumption and savings growth alongside wage increases in the civilian sector.
The influx of military-related income has led to noticeable economic trends across Russia. By the end of 2023, Russians’ bank account balances had grown by approximately 18% compared to the previous year.
While most regions saw growth rates similar to or below the national average, about a dozen areas experienced growth exceeding 25%. Economists attribute this disparity to the concentration of payments to contract soldiers, mobilized personnel, and families of casualties in these regions.
Information for this story was found via Re: Russia, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
