In particular, in the draft budget of the Russian Federation for the next year, spending on Russian defense is increased by more than 40%.
Due to the war and defeats at the front, Russia is significantly increasing budget expenditures for the defense sector for 2023.
In particular, on November 16, Russia made the largest issue of debt obligations in one day, attracting 820 billion rubles ($13.6 billion), reports the Ministry of Defense of Great Britain with reference to intelligence data on Twitter .
“This is important for Russia, as debt issuance is a key mechanism for maintaining defense spending, which has increased significantly since the invasion of Ukraine,” the report said.
It is also said that Russia’s planned spending on “national defense” in 2023 at the level of approximately 5 trillion rubles ($84 billion) indicates an increase of the previous 2023 budget by more than 40%.
As noted by the intelligence, the issue of debt obligations is expensive in periods of uncertainty.
“The size of this auction very likely indicates that the Russian Ministry of Finance considers the current conditions to be relatively favorable, but predicts an increasingly uncertain tax environment over the coming year,” added the intelligence.
The war in Ukraine: consequences for Russia
As UNIAN reported, according to calculations made back in May, the Russian Federation spent 900 million dollars a day on the war with Ukraine . This amount then included payments to soldiers, providing them with ammunition and missiles, as well as the costs of repairing damaged military equipment.
According to British intelligence, massive missile strikes on Ukraine are depleting the reserves of the Russian Federation.
It was also reported that the war against Ukraine forever deprived the Russian Federation of its status as a leading energy state.