The Economy of the Russian Federation is Declining: Arms Production Dropped by 20%.

Decline of the Russian Military-Industrial Complex

According to inkorr.com: The economic situation in the Russian military-industrial complex continues to deteriorate, as evidenced by data from the Center for Counteracting Disinformation under the National Security and Defense Council. In September, the production of tanks, armored vehicles, and metal products decreased by 6-20%.

'Rosstat conceals the scale, but even official statistics show that GDP growth has stopped, budget revenues have fallen by 21%, and the deficit exceeds planned indicators by five times. Since January 1, the Kremlin has raised VAT to 22%, removing benefits for small businesses, which effectively takes money from the middle class to finance the war. Prices for chicken and pork have risen by 30%, entrepreneurs are closing down, and Putin along with Patrushev no longer control the food market.'

Kovalenko notes that 'Gazprom' compensates for its losses at the expense of the population, the Ministry of Finance is cutting expenditures, and new U.S. sanctions against 'Rosneft' and 'Lukoil' complicate access to resources for the Russian military-industrial complex. The only opportunity for survival remains in China, but this prospect is also under threat, as soon a meeting between Trump and Xi will take place in Busan, where they will discuss cooperation issues that will be separated from Russia.

In recent years, the Russian military-industrial complex has not only failed to stimulate the economy but has also seriously lost value due to reduced production, negative economic conditions, and imposed sanctions. This could significantly affect the geopolitical and economic situation in Russia in the future.

The situation in the Russian military-industrial complex is not favorable for the country's economy. The reduction in production and the decline in budget revenues indicate serious problems that Russia is facing. Prospects for cooperation with China may become the only way out, but this issue remains open and ambiguous.