Russia’s stealth funding of the conflict, economic risks to Moscow’s negotiating power
Date
1/13/2025 12:44:44 AM
(MENAFN)
Russia's total army funding rose above its budget abilities and could lead to the fall of organizations and banks, therefor affecting Moscow's negotiating positions.
That’s in line with an article for Navigating Russia by Craig Kennedy, a previous banker, who is now part of the Davis Center for Russian and Eurasian Studies at Harvard University.
Moscow is stealthily funding about half of these army costs via large debts, making banks give loans on non-market terms to firms that supply goods and services to cover the necessities of the conflict, the author states.
In accordance to him, Moscow is funding the conflict, first of all, from the defense funds, which experts generally consider "surprisingly resilient." The second track is a low-profile, off-budget funding scheme that shows balance in size to the defense finance.
The Kremlin is making Russian banks to broaden preferential loans to conflict-related businesses on conditions set by the state.
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