Putin's war deepens: Russian sanctions and expenses soar
Western sanctions imposed on Russia due to its military actions in Ukraine will not be lifted anytime soon, according to Andrei Kostin, head of VTB Bank, the second-largest lender in Russia. He expressed this sentiment in an interview with Reuters.
3:09 PM EST, December 2, 2024
The head of the Russian bank highlighted in an interview with Reuters that Western sanctions imposed on Russia will not be lifted anytime soon because of its military actions in Ukraine.
Kostin also noted that, in his opinion, Russian currency reserves frozen in the West after the outbreak of the war in Ukraine will not be returned.
In the West, they claim, "let's pay for Ukraine’s reconstruction from the reserves." And they will present such a bill that even the reserves won't be enough, said Andrei Kostin, head of VTB Bank, in an interview with Reuters.
This is how much Putin’s war costs Russia
The law on Russia’s federal budget signed by Vladimir Putin provides for a 25% increase in military spending compared to the current year, reported Reuters, citing a legal act published on Sunday in the online government journal.
The independent Russian portal Meduza reported that defense spending in 2025 is expected to be about 13.5 trillion rubles, approximately 125 billion USD, constituting about 6.3% of Russia's GDP.
Meanwhile, in 2026, military expenditures are anticipated to be 12.8 trillion rubles (120 billion euros), and in 2027, they are forecast to be 13.1 trillion rubles (123 billion euros). In total, Russia intends to allocate at least 40% of the budget for defense and national security between 2025 and 2027.
