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world13h ago
Russia’s War Machine Is Creaking
- Russia’s budget deficit soared to 5.9 trillion rubles in the first four months of 2026, signaling a potentially record annual shortfall.
- Putin acknowledged the economy contracted about 1.8% year-to-date, while military spending remains high as the front lines pressure Moscow.
- The currency and sanctions era keeps the ruble strong, but high rates choke civilian firms and credit access.
- A surge in desertions and draft evasion points to weakening morale and potential impact on manpower.
- Regional authorities pressure businesses to recruit for the army, but some directors resist and question the approach.
- Drones and battlefield tech gains by Ukraine widen the gap behind Russian lines, complicating Moscow’s logistics.
- The shadow economy grows as tax pressure tightens controls on transfers and cryptocurrency.
- Public spending on infrastructure and urban development is being cut as the war economy expands.
- Industry shifts show the state reallocates resources from civilian use to military production.
- Analysts warn coercion may fail to sustain recruitment as elite support frays and internet controls tighten.
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