Russian GDP would have been more than 5% higher if Moscow had not launched the invasion.
The war in Ukraine is having a significant impact on the Russian economy, increasing domestic prices and forcing Russia to devote a third of its budget to defense.
The Financial Times writes about this, citing a draft document from the US Treasury Department.
Russia's economy would have grown by more than 5% if Putin had not gone to war in Ukraine, the newspaper reported, citing Rachel Lingaas, the ministry's chief sanctions economist.
Lingaas added that the country lags behind other energy exporters, including the United States.
Read the leading news of the day:
According to the FT report, Moscow spent more than $100 billion, or almost a third of its total defense spending in 2023.
The backbone of the Russian economy – oil and gas revenues – has taken a hit this year, although there has been a slight recovery in recent months as oil prices have strengthened. Moreover, Western sanctions on Russian oil trade have not had as much of an impact as originally predicted.
Recall, earlier British intelligence reported that the Russian economy is in danger of “overheating” due to the war.
Read also:
Related topics:
More news
