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How is Russia financing its foreign wars?


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I'm wondering where Russia is finding the money to fight its foreign wars.

 

The recession hit Russia badly and its economy hadn't really started to recover when they intervened in Ukraine. This conflict has cost Russia dearly. Apart from the cost of the military intervention it is said that sanctions have cost Russia a further $40 billion.

 

Now Russia is involved in Syria and has allocated around $60 billion to propping up the Assad government.

 

Where is the money coming from?

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I'm wondering where Russia is finding the money to fight its foreign wars.

 

The recession hit Russia badly and its economy hadn't really started to recover when they intervened in Ukraine. This conflict has cost Russia dearly. Apart from the cost of the military intervention it is said that sanctions have cost Russia a further $40 billion.

 

Now Russia is involved in Syria and has allocated around $60 billion to propping up the Assad government.

 

Where is the money coming from?

 

Perhaps they are borrowing it like the UK,

http://www.nationaldebtclock.co.uk/

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Interesting question.

Their economy is heavily reliant on the export of energy especially natural gas and oil. Its one of the largest producers of both. The government actually owns major portions of the companies which deal with these.

 

Because Putin is so powerful and can do what he likes then he has less restrictions on him than someone like Cameron. Will have a look later on and give you some figures if the thread is still going.

 

Looked this up so an easy overview on the Russian economy can be found here under the World Bank's assessment. Its in recession, but the sanctions arent that bad.

Its suffering from a fall in energy prices, especially the price of oil.

 

http://www.worldbank.org/en/country/russia/overview

 

Theres a powerpoint slideshow http://pubdocs.worldbank.org/pubdocs/publicdoc/2015/10/852351444136675255/rer34-presentation-eng.pdf

The short answer is he has a fund, the spend will be spread and hes likely to get money from Syria.

 

Alternatively Al Jazeera addressed this question specifically and you cna see the answer in this news Report , where a researcher from the Royal United Services Institute answers your question. Its the first article and if you wnat to skip straught to it then its from 5m to 12 mins.

 

http://www.aljazeera.com/programmes/countingthecost/2015/10/russia-economy-war-syria-151003113105759.html

Edited by 999tigger
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