In its update on the Ukraine war, ISW notes that Russia's war costs will continue to rise as Moscow is forced to send more soldiers to the front and acquire new supplies. There is. “Russia's resources are limited and Putin cannot ignore these costs indefinitely,” the analyst said.
Will Russia change direction from the Ukraine war? ISW: Putin may change strategy
According to ISW, the Russian economy will reach a “burnout point” at some point. This would cause “tremendous damage to Russian society, and President Putin would have to make important decisions about whether to provide more resources to Russia's war effort or change the way the war is fought in order to maintain regime stability.” There is a possibility.”
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The American newspaper The Washington Post reported on Sunday that Russia's economy is “at risk of overheating.” Russia's excessive military spending is unnaturally stimulating the country's economic growth. As a result, Russian companies are forced to “artificially raise wages” to meet labor demand while remaining competitive with high salaries in the military sector.
Russia. The economy is on the brink of burnout
The paper noted, among other things: In July 2024, Russian Central Bank Governor Elvira Nabiullina warned that Russia's workforce and production capacity were “almost exhausted.” According to the Washington Post, Russian private companies are barely able to keep up with the salaries of Russian military personnel, forcing them to offer salaries several times higher than the industry “average.”
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At the same time, as reported by ISW, Russian local authorities have significantly increased lump-sum payments for signing contracts with local forces. The goal is to maintain the pace of deployment of Russia's military, which numbers about 30,000 people. New soldiers every month.
The costs of waging war are increasing. President Putin is engaging in “cryptomobilization”
“This highlights the fact that Russia does not have unlimited human resources and that the increased costs of compensating for losses on the front must be considered financially and socially.” we read.
Experts believe Putin believes it would be too costly for his regime to declare a new wave of partial mobilization or impose full mobilization. The dictator is therefore said to have resorted to “crypto mobilization operations,” which appear to be increasingly straining Russia's war economy.
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Moreover, the recent appearance of North Korean soldiers on Russian territory and reports of their deployment in the Kursk Oblast battle zone show how fragile Putin's war machine is, analysts say.
Source: ISW, “Washington Post”
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