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| The Spending War Funds Russia's to Invade in Ukraine |
Moscow - The war between Russia and Ukraine does not only have an effect on each country. This war also has an impact on countries globally as a butterfly effect.
Quoted from Newsweek (18/5/2022), Russia has spent about one billion rubles or about USD 15.5 million per hour on the Ukraine war since Russian President Vladimir Putin's military campaign began in February. This is based on data from the Russian Ministry of Finance released Tuesday (17/5/2022).
In April, as reported by The Moscow Times, Russia's federal budget of 628 billion rubles was spent on national defense. If broken down about 21 billion rubles a day. Meanwhile, in 2021, the government spent only 275 billion rubles.
Long before, a number of economists and consultants who joined the Center for Economic Recovery provided information about the events of the Russo-Ukrainian war. According to the official CIVITTA website, two expert business consultants (CIVITTA and EasyBusiness) conducted a study to assess the economic costs of Russia and Ukraine.
The study found that the estimated losses suffered by Russia reached USD 7 billion for the purposes of equipment and liquidation of military personnel. Then, in the first 4 days of the war, they also estimated that the country would lose more than USD2.7 billion of GDP in the next few years due to the large number of human lives lost.
CIVITTA also estimates the total cost of daily warfare. It is estimated that Russia spends more than $20-25 billion on logistics, personnel, rocket launches, and other wartime needs. In the midst of the economic losses suffered, the condition of the Russian economy was exacerbated by the existence of trade restrictions.
The threat of discontinuation of the German-Russian gas project, Nord Stream 2, will add to the loss of future revenues. The ban on the import of Russian technology is also capable of destroying the competitiveness of the Russian economy.
According to CIVITTA, this condition is capable of providing a loss of USD142.8 billion. As a result of the falling value of the ruble, falling state revenues, trade restrictions, and freezing bank assets will make Russian citizens suffer and experience the biggest crisis in history.