Russian authorities are concealing the country's economic crisis at the St. Petersburg forum - ISW
Kyiv • UNN
At the SPIEF, Russian officials claimed economic stability despite fuel shortages and debts. ISW and intelligence point to a crisis and a Russian budget deficit of $80 billion.
Russian officials continued to ignore the economic problems and fuel shortages facing Russia at the St. Petersburg International Economic Forum (SPIEF). This is stated in a report by the Institute for the Study of War (ISW), UNN reports.
Details
It is noted that instead, Kremlin officials presented a "facade of economic stability":
- Maxim Oreshkin, Deputy Chief of Staff of the Russian Presidential Administration, stated on the sidelines of SPIEF that Russia's economy has grown by 10 percent over the last three years, while Europe's economy grew by only three percent over the same period, Russia's unemployment rate is the lowest in the world, and there are no disruptions in the Russian economy;
- Russian Finance Minister Anton Siluanov stated that the Russian government will soon pay off its external debt (debt to non-residents), and that Russia's real income (individual income after adjusting for inflation) has grown by more than 24 percent in just over three years;
- Leonid Slutsky, Chairman of the Russian State Duma Committee on International Affairs, stated that Russia's largest banks have provided a positive outlook for mortgage lending growth;
- Russian Deputy Prime Minister Alexander Novak stated that the domestic fuel market in the Russian Federation remains "stable," and prices at gas stations are rising in line with inflation.
At the same time, analysts point out that the Russian economy is performing much worse than Russian officials claimed, as the Kremlin prioritizes maintaining the appearance of economic stability by pursuing economically suboptimal policies that will have long-term economic consequences.
Russia's extremely low unemployment rate reflects the fact that the Russian Federation is experiencing a labor shortage, which is driving wage inflation in the civilian and defense sectors, contributing to overall inflation. Russia is also increasingly struggling with liquidity issues and high levels of external debt after gradually depleting the liquid reserves of its sovereign wealth fund to finance the war in Ukraine
They add that Russian officials at SPIEF are promoting a narrative of a stable and growing economic situation despite growing fuel shortages, rising debt, and stagnant economic growth, as the Kremlin prioritizes financing its war in Ukraine regardless of the economic costs.
Recall
According to estimates by the Foreign Intelligence Service of Ukraine, at the forum in St. Petersburg, the Russian Federation is trying to hide a budget deficit of 80 billion dollars. Revenues have fallen by 40%, and 71 regions of the country have become deficit-ridden.