Despite sanctions and economic pressure, Russia continues to finance its war machine with oil, and the military is only getting stronger.
The Russian economy is not yet showing signs of a complete collapse. Although the civilian sector is gradually weakening, the military part of the economy continues to develop actively.
The president of the Center for Globalistics “Strategy XXI” Mikhail Gonchar stated this in an interview with RBC-Ukraine.
“Of course, when we talk about the Russian economy being about to collapse, it may collapse in some area, let’s say, more in relation to the civil sector and what we call consumer goods production, in terms of financing social programs and so on,” the expert explained.
At the same time, according to him, this does not concern the military component of the Russian economy, which is only growing.
“War has become a profitable business not just for large Russian arms corporations, but for many ordinary Russians. Together with their family members, there are several tens of millions of them, who, I emphasize, are feeling very well for now,” Gonchar emphasized.
He recalled that weapons production is a non-investment asset that does not create added value.
“This is simply a waste of investment and money,” the expert noted.
However, as the expert noted, the Russian military machine is still working. Its main source of support is the export of energy resources, especially oil.
“Russia continues to receive income. This is not the income it could have without sanctions. But it is still funding the war budget,” Gonchar emphasized.
He stressed that expectations of a rapid collapse of the Russian military economy are not yet realistic.
“Especially now, when there has been some increase in oil prices. It has emboldened the Kremlin and will add some small money to the war budget. But again, it is not something that will help Russia to hold on systemically.”
By the way, the rise in oil prices occurred after the escalation of the conflict between Israel and Iran over the weekend.
Earlier, it was reported that the heads of state of the Group of Seven members reached a consensus on the need to tighten sanctions against Russia.
We previously reported that the administration of US President Donald Trump has curtailed the work of the pressure group on Russia.
