Moscow could soon struggle to finance the war, and fiscal breathing room may well be what the Russian leader’s looking for.

cross-posted from: https://lemm.ee/post/56722499

“If fiscal expenses remain at their January levels throughout the remainder of the year, the NWF reserves could vanish in just three months. And even if they don’t — as is more likely — 2025 is probably the last year Moscow will be able to fully cover its fiscal deficit by tapping into those savings.”

  • thebestaquaman@lemmy.world
    5·
    4 hours ago

    Besides the whole “russia will collapse in a couple months” rhetoric that’s been floating around the past couple years, it remains a fact that there is a limit to how long russia can keep spending the way it is.

    They are operating on a war-time economy, which more or less by definition is not sustainable in the long term. Also, with the way russia works, and the fact that putins victory plan seems to be “project the image that we can keep going forever in order to break Ukraine/support for Ukraine”, I think it’s likely that if the russian economy breaks, it’s going to break quite suddenly and quite hard.

    With that said, I don’t know if Russia can keep going for six more months or six more years (of course, I hope for the former). Regardless, they will break sooner or later. Until that time comes, all of us in Europe need to keep ramping up military production, support for Ukraine, and sanctions against russia.