putin's calls for competitive military industry are far from reality – ISW

putin's calls for competitive military industry are far from reality – ISW

The cost of mobilizing and expanding the army will hurt the russian economy

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putin's calls for competitive military industry are far from reality – ISW

russia's efforts to increase and reformat its armed forces, combined with Western sanctions, will have long-term damaging effects on the russian economy. According to forecasts of financial experts, the kremlin will face a budget deficit that will “drain moscow’s reserves to their lowest level in years” due to reduced energy revenues, sanctions, and the cost of russian mobilization.

Source. The report of the Institute for the Study of War.

Details. The payouts to mobilized men including social benefits may cost the kremlin around $14.6-$32.4 billion in the next six months. The number does not account for payouts to other categories of servicemen within the Armed Forces of the russian federation. ISW earlier estimated that one volunteer battalion of 400 servicemen costs russia at least $1.2 million per month excluding enlistment bonuses and special payments for military achievements.

Payments to increase and maintain the army will put pressure on the russian economy for decades, experts say. The kremlin is already facing problems with paying the promised compensation, which increases social tensions in society. 

russian Telegram channels released footage of mobilized men in Ulyanovsk protesting due to payment issues. Other footage from the Chuvashia Republic covers a russian local official yelling at protesting mobilized men that she had not promised them a payment of 300,000 rubles.

ISW has also reported about conflicts within russian military formations amalgamated from different sources, as the amount of payments for different military servicemen, causing misunderstandings and brawls between military.

russian president vladimir putin’s calls for a competitive russian military industry are divorced from reality, the report states.

putin stressed on November 2 during a meeting of the Coordinating Council for the russian Armed Forces that it is important for the russian government to ensure active competition between russian military arms manufacturers.

putin’s calls contrast with recent reporting that russia has purchased weapons systems from Iran and North Korea to support its war effort in Ukraine. U.S. National Security Council spokesman John Kirby announced the day before that according to the intelligence data, North Korea is covertly supplying russia with artillery shells.

ISW previously reported that Iranian shipments of drones and possible ballistic missiles to russia will likely further increase russian dependence on Iranian-made weapons systems.

According to analysts, russia has likely negotiated the weapon shipments with Iran and North Korea as it has significantly depleted its stock of munitions in air, missile, and artillery strikes over the course of the war in Ukraine and cannot readily restock them.

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