not sarcasim!
Based on the search results, the war in Ukraine is costing Russia significantly in multiple ways:
1. Direct military costs:
- Estimates suggest the war costs Russia between $500 million to $1 billion per day [3].
- Ukrainian estimates put the material cost from destruction of tanks, planes, and weapons at around $5 billion for just the first two days of the war [5].
2. Economic impact:
- Russia's GDP growth is expected to shrink by 7% instead of the 2% growth forecast before the invasion [5].
- The Russian stock market declined by 20% during the military buildup [3].
3. Increased military spending:
- In 2023, Russia's military and military-industrial complex will receive almost 10 trillion rubles ($120 billion) from the budget, which is three times more than before the war [4].
4. Sanctions and international isolation:
- Western sanctions have severely impacted Russia's economy, limiting trade and investment [1][2].
- Russia faces difficulties in accessing high-tech components due to sanctions [1].
5. Human capital loss:
- Russia faced a record shortage of factory workers in July 2023, with more than 43% of industrial enterprises facing a shortage [3].
6. Long-term economic consequences:
- Macroeconomic stability has worsened [1].
- Foreign trade and Russia-bound investment have dried up [1].
- The economy is becoming increasingly dominated by Kremlin-connected elites, leading to increased crony state capitalism and kleptocracy [1].
7. Opportunity costs:
- Even if Russia wins, it cannot afford to rebuild and secure Ukraine due to financial costs and continued isolation from global markets [2].
The overall impact is so severe that some economists argue Russia's economy cannot afford to either win or lose the war, leading to a potentially protracted conflict [2].
Citations:
[1]
https://link.springer.com/article/10.1057/s41291-022-00181-7
[2]
https://www.businessinsider.com/rus...ary-spending-inflation-worker-shortage-2024-2
[3]
https://en.wikipedia.org/wiki/Economic_impact_of_the_Russian_invasion_of_Ukraine
[4]
https://www.wilsoncenter.org/blog-post/russias-unprecedented-war-budget-explained
[5]
https://theconversation.com/the-cos...e-to-pay-the-price-of-invading-ukraine-178826
Despite the horrible human casualties. This Ukranin/Russia war is a gift to Europe and the United States to seriously cripple Russia for the next 20 to 40 years. This is the United States cheapest way to cripple one of the US greatest enemies!
Diving Mullah