Source: Fortune
Summary
Russia’s finance ministry estimated that spending on Vladimir Putin’s war in Ukraine will exceed its budget by at least 2 trillion rubles ($28 billion) this year, with a more negative scenario putting that figure at 4 trillion rubles. The ministry also predicted war-related overspending of 4 trillion rubles in 2027 and 2028. Russia’s budget deficit is worsening, with a deficit of 5.9 trillion rubles in the first four months of the year. The government has been forced to tap reserves in its wealth fund, which is rapidly dwindling. Ukraine’s use of drones has given it a “tactical drone supremacy” and has allowed it to regain ground and put Russia on the back foot.
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The numbers tell one story.
Russia’s war costs are ballooning, with estimated overspending of 2-4 trillion rubles this year. The finance ministry is asking government agencies to cut non-essential spending by 10%. Ukraine’s drone innovations have given it a tactical advantage, allowing it to strike deep inside Russian territory and disrupt supply lines. Russian casualties have soared to over 30,000 a month, draining the Kremlin’s financial resources. Ukraine is starting to regain more ground than it is losing, with drones playing a key role in its success.
The war is entering a new phase, with Ukraine enjoying “tactical drone supremacy” and Russia on the back foot.
Author: Evan Null
