• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 20 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 5 days The United States produced more crude oil than any nation, at any time.
  • 10 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 6 days How Far Have We Really Gotten With Alternative Energy
  • 9 days James Corbett Interviews Irina Slav of OILPRICE.COM - "Burn, Hollywood, Burn!" - The Corbett Report
  • 9 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 11 days Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 11 days e-truck insanity
  • 11 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)

Russia Mulls Military Spending Cuts As Low Oil Prices Weigh On Economy

Struggling with a recession amid low oil prices and measures to curb the pandemic, Russia is mulling over cutting its military budget by 5 percent between 2021 and 2023, recommendations from the Russian finance ministry showed.

According to the finance ministry’s recommendations for budget expenditures in the next three years, as reported by Reuters, Russia is also considering cutting spending on the court system and on wages for civil servants by 10 percent.

Spending on military is considered a state secret in Russia, but defense expert and the Editor-in-Chief of the ‘Arsenal of the Fatherland’ magazine, Victor Murakhovsky, told Russian outlet RBC that the 5-percent cut for the years 2021, 2022, and 2023 likely means that the budget for the Russian Defense Ministry may be lower by around US$3.17 billion (225 billion Russian rubles) for the three years combined.

Last year, Russia was the fourth-largest spender on military in the world and increased its military expenditure by 4.5 percent to US$65.1 billion, according to estimates from the Stockholm International Peace Research Institute (SIPRI).

However, Russia is now considering cuts in its military spending as its economy is suffering the consequences of the oil price crash it helped create with the temporary rift with its OPEC+ partner Saudi Arabia in March. The Russian ruble crashed, and Russia’s oil income shrank as a result of the plunge in oil prices. Under the new OPEC+ deal from April, Russia is cutting its oil production by 2 million barrels per day (bpd) until the end of July, after which cuts are set to ease.

The oil price crash, along with the coronavirus-driven global recession, will result in Russia’s economy shrinking this year by 6 percent, or by the most in 11 years, the World Bank said in its latest economic report on Russia earlier this month.   

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News