Russia Will Soon Run Out of Money for the War: Expert Reveals Scenarios of the Kremlin.

According to FREEДOM:

Problems in the Russian Economy

After the imposition of sanctions against Russia, economic ties between the Western countries and the Russian Federation have significantly diminished. However, countries of the Global South continue to maintain cooperation with Moscow. While 2022 was relatively successful for the Russian economy, the situation began to worsen in 2023-2024. This was stated by Ivan Us, a candidate of economic sciences and the chief consultant of the Center for Foreign Policy Studies, during a broadcast on the FREEДОМ TV channel.

In his opinion, one of the main consequences of the sanctions has been a decrease in the liquid part of the National Welfare Fund to a level lower than the budget deficit.

'Consequently, now the Russian leadership is forced to take very unpopular measures. One of the main news from the last week or two is that there is less and less gasoline at gas stations in Russia. Moreover, it is said to be due to the strikes by Ukrainian drones, but look where the crisis is: the Kurils, the Far East of Russia, we have not flown there yet. I think this is happening because Russia has decided to limit the funding for the damping article,' Us noted.

The economist clarified that the damper is a subsidy to oil producers from the budget that compensates for the difference between export and domestic fuel prices. When this subsidy was canceled, fuel suppliers began to remove gasoline from gas stations to avoid losses.

'This has happened before in September 2023. And here is the direct effect of this sanctions pressure: in Russia, the country of gas stations, gasoline is disappearing from the gas stations,' said the economist.

Financial Difficulties and War

Us believes that if the spending trend from the Welfare Fund does not change, the liquid part of the fund may disappear as early as this year.

'The resources were used too quickly in July. And this may push Russia to not pay pensions in the state or freeze citizens' money in bank accounts. But there is still the option of emission, however, it is already happening. And when the money supply grows, and this growth is not backed by goods, it is a classic overheating of the economy, when there is a huge amount of money and a small amount of goods, leading to unprecedented inflation, which is officially around 9.5% in Russia. And I think it is clearly above 10%, although the plan was 4%. This is partly due to the influence of sanctions on the Russian economy,' the expert said.

He also emphasized that as long as Russia continues the war, its citizens will not be able to live in prosperity.

'Because Russia continues to wage war, the citizens of Russia should be prepared for their savings in banks to be taken away, as the Soviet Union did, if I'm not mistaken, in March 1991. Pensions will cease to be paid. And then there is a reduction in salaries. It is presented in a beautiful wrapper that now it is not a five-day but a four-day work week. And this means that you are paid for not five but four days. Essentially, a reduction in salary by one-fifth. And this is happening in Russia to an increasing number of enterprises. Russia is choosing war, accordingly, a cross is put on the economy,' Us summarized.

Please note, the Center for Counteracting Disinformation at the National Security and Defense Council of Ukraine reported that a large-scale invasion of Ukraine may first absorb half of the budget revenues of the Russian Federation.

Thus, in the context of ongoing sanctions and military actions, the Russian economy is facing serious challenges. Experts note that further escalation of the situation may lead to significant economic problems for the country and its citizens, who are already feeling the effects of changes in the fuel market and possible financial difficulties.