The Kremlin plans to cut spending that is not related to the defense sphere.

The Kremlin does not have enough money for the war against Ukraine. The Russian authorities are preparing to withdraw funds from large producers of raw materials and state-owned companies.

According to Bloomberg, Russia is planning to cut spending that is not related to the defense sphere because of the war in Ukraine. It is noted that Prime Minister Mykhailo Mishustin issued instructions to Russian officials back in December, from which it follows that dividends from state-owned companies and “one-time payments” from coal mining companies and fertilizer producers will increase significantly.

The document states that it is necessary to allocate 175 billion rubles for additional costs for the resettlement of 100,000 people from Kherson to the territory of Russia. The publication indicated that this may indicate recognition by the Russian authorities of the impossibility of recapturing the city.

At the same time, it is reported that the “mobilized” money will be used to cover the costs associated with a full-scale war in Ukraine. It is indicated that the decision on the amount of dividends or one-time fee has not yet been made, but the Kremlin will try to set “levies” at a level not lower than 50% of the net profit of state-owned companies.

Russia’s expenditures on the war against Ukraine – what is known

The media reported that over 20 years, Russia has invested more than $4.5 billion in surface combat ships, but due to corruption in the Navy, only 33 new combat ships have been launched in 16 years.

In turn, financier Bill Browder said that 80% of the money that was supposed to be spent on the war against Ukraine was stolen by Russian officials.

According to calculations made back in May, the Kremlin spends 900 million dollars every day on the war with Ukraine. This includes paying soldiers, providing them with ammunition and missiles, and the cost of repairing damaged military equipment.

On November 19, the Ministry of Defense of Great Britain reported that due to the war and defeats at the front, Russia is significantly increasing budget expenditures for the defense sector for 2023.