Russia’s ruble rises to 81 per dollar, but inflation hits 10.1%, deepening fiscal strain as energy revenues shrink in ruble terms, per UK intelligence.
46% of Russians support the invasion of Ukraine, rejecting troops withdrawal without Kyiv's full capitulation, while 54% report worsening war-related hardships.
Sikorski says Russia's war will conclude when the Russian President recognizes the invasion as a mistake and accepts that his goals are unattainable at an acceptable cost.
The draft budget has a 16% cut in social spending, prioritizing military funding amid 9% inflation and economic challenges from excess demand, per UK intelligence.
Russia plans to allocate almost $1 billion for military contract payments from 2025 to 2027, indicating a continued reliance on crypto-mobilization for Ukraine war manpower.
Russia's finite resources, strained by inflation, labor shortages, dwindling stockpiles, and sanctions, make it difficult to sustain its war effort beyond 2025-2026, as per military analyst Anders Puck Nielsen.
Russia's artillery may deplete by 2025, tank reserves are sufficient until 2027, armored vehicles may degrade within 3-4 years, the financial strain growing, yet the manpower remains stable.
Russia is producing around 250,000 artillery shells monthly or 3,000,000 a year, compared to just 1.2 million annually from the US and Europe combined for Ukraine, per CNN data.
In 2023, Russia's defense industry boosted output, employing 3.5 million workers and refurbishing existing stocks. Artillery munition production surged, but may peak in 2024 due to capacity limits, still offering a likely material advantage over Ukraine for the year, per UK intelligence.
The report suggests Russia’s military-industrial complex showed only modest real growth in 2023, with much of so-called "production" being, in fact, the cannibalizing of systems in storage with certain limits.
Russia's 2024 budget relies on optimistic 22% revenue growth to fund 26% higher expenditure, but projected oil and gas revenue gains may fall short, with government having to weigh measures like less National Wealth Fund contributions or more taxes and debt, per UK intelligence.
Ukraine counts 4.9 people who relocated within the country due to the war. 2.5 million receive social assistance, but this year, the total spending will be reduced by 30%.
Heating systems are failing across Russia, leaving residents in sub-zero distress, as years of military prioritization over infrastructure combine with wartime strains on budgets and workforces, per UK intelligence.