Submission Statement: „Moscow pours colossal sums into its arms industry, but endemic corruption and a shortage of components means it is unable to meet the needs of its military.“ Kseniya „Kassie“ Kirillova explains that the Kremlin has created a shadow system to finance the war in Ukraine, using preferential loans to war-related industries, but this has driven up inflation and may ultimately consume half of the government’s budget, threatening its ability to sustain the war effort. It will be impossible to finance the war indefinitely, from either the budget or hidden means, without seriously degrading the well-being of ordinary Russians.
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Submission Statement: „Moscow pours colossal sums into its arms industry, but endemic corruption and a shortage of components means it is unable to meet the needs of its military.“ Kseniya „Kassie“ Kirillova explains that the Kremlin has created a shadow system to finance the war in Ukraine, using preferential loans to war-related industries, but this has driven up inflation and may ultimately consume half of the government’s budget, threatening its ability to sustain the war effort. It will be impossible to finance the war indefinitely, from either the budget or hidden means, without seriously degrading the well-being of ordinary Russians.