Russia’s Hidden War Debt Fuels Looming Economic Crisis
Russia’s war financing involves a dual strategy: a publicized defense budget and a covert system of state-directed, off-budget loans to defense contractors totaling hundreds of billions of dollars. This off-budget lending, initiated after the Ukraine invasion, has resulted in soaring corporate debt and crippling interest payments, with interest rates reaching 21%. The resulting financial strain is causing concern about potential bankruptcies and a broader economic crisis, potentially overshadowing the officially reported defense spending. Analysts warn that this hidden debt burden, exceeding official military spending, poses a significant threat to Russia’s financial stability.
John Q. Hosedrinker