As the third anniversary of Russia’s invasion of Ukraine approaches, the military’s payments for those killed on the battlefield pose a tough reckoning for families.
Russian economist Vladislav Inozemtsev estimates that the family of a 35-year-old man killed in action after serving one year in prison will receive about 14.5 million rubles, or $150,000, in salary and death compensation. According to wall street journal. This does not include other bonuses or insurance benefits.
In some regions of Russia, that amount is higher than the income he would have earned as a civilian if he worked until he was 60 years old.
“It is economically more profitable to go to the front and be killed a year later than to remain alive for the rest of your life,” Inozemtsev said. journal.
This “idea of ​​death” in wartime Russia, as he termed it, brought windfall benefits to some communities. In fact, the poverty rate has fallen to its lowest level since Russia began collecting poverty data in 1995.
As of June, death payments totaled $30 billion over the past year. journal Said. And in the Tuva and Buryatia regions, for example, bank deposits have surged by 151% and 81%, respectively, since January 2022, the month before President Vladimir Putin launched a full-scale invasion.
Such incentives are necessary to keep his war machine fueled, as general mobilization with conscription may prove politically unacceptable.
According to Western estimates, more than 600,000 Russian troops were killed or wounded during the fighting in Ukraine. And some economists think that Moscow needs 30,000 new employees every month to replace the casualties. The need for more troops is so dire that Russia is asking North Korea to provide troops.
Meanwhile, the military is also competing for personnel with Russia’s private sector, which offers high wages to workers to stay afloat, including at factories producing weapons for the war against Ukraine.
That contributed to high inflation. According to official statistics, interest rates were close to 10% as of September, and the central bank raised the base rate to 21%. Food prices are soaring, with potatoes up 73% since the beginning of the year.
Although headline GDP growth rates appear to be resilient for now, supported by massive military spending, underlying economic distortions and ongoing sanctions mean Russia will be unable to maintain a strong relationship with Ukraine after 2025. Some experts predict that the war may not be sustainable.
