Blood drilling in Ukraine has been going on for almost three years. For a long time the Kremlin breathed with the so -called thriving economy in the aggressor’s land. But the reality seems to be different.
The Russian authorities increase the alarm: it is said that the economic risks increase. In particular lower oil prices are worried, reports from the Ministry of Economic Affairs and the Central Bank for a meeting with Prime Minister Mikhail Mischustin on 4 February. These can be viewed by the Reuters news agency.
The budget restrictions and an increase in credit losses in companies are therefore seen as risks. “A situation in which the delay in the economy to a technical recession takes place much faster than the decrease in inflation is becoming increasingly likely,” says the report of the Ministry of Economic Affairs.
Civilian importance of 21 percent
The high important interest rates of currently 21 percent continued and investments, which in turn threaten Russia’s growth prospects. “The current lack of investments will lead to a lack of growth (lower growth rates) in two to three years,” says the report.
Both the Ministry of Economic Affairs and the Central Bank indicate the risk of lower oil prices. These can lead to problems for the federal budget. The Central Bank’s report emphasizes the “significant risk” of falling oil prices if an American production offensive would flood the market. It was also pointed out that the free capacities of the Member States of the OLIC cartel OPEC had almost reached a record value and corresponded to the volume of the export of Russian crude oil. “The budget restrictions in the next five to ten years can be more difficult than it seems,” said the central bank’s assessment of the possible consequences of lower oil prices. The Ministry of Economic Affairs and the Central Bank initially did not respond to questions about comment.
The decrease in profit is expected at companies
In its report, the Ministry of Economic Affairs explains that it has been prepared for many rendering cost increases for companies. The cumulative increase in the costs of companies – for employees, taxes, rates and interest costs – will be estimated this year compared to 14.8 trillion Roebel (156 billion euros) in 2024. unfavorable external circumstances and falling internal demand make it difficult for companies To pass on their costs to consumers. This will lead to a further fall in profit. All this buried the financial stability of the companies.
The income from the energy sector earns around a third of the Russian household income. Moscow helps higher oil prices to get his budget deficit under control. This was swollen to 1.7 trillion Roebel in January alone. The State Fund has become the most important source for the financing of the now current Russian budget deficit. The liquid funds of the funds fell by around two -thirds of $ 112.7 billion before the war to just $ 37.5 billion.
Source: Krone
I am Ida Scott, a journalist and content author with a passion for uncovering the truth. I have been writing professionally for Today Times Live since 2020 and specialize in political news. My career began when I was just 17; I had already developed a knack for research and an eye for detail which made me stand out from my peers.
