AI
Tuesday, June 14, 2022 9:40:22 PM
Sanctions Update
Russia’s ability to finance the war and defense industry is still robust, sanctions expert says
Coordinated global sanctions may not immediately affect the Kremlin’s ability to finance its defense industrial base or its ongoing war in Ukraine, Russian economy expert Richard Connolly said.
“The Russian state’s ability to finance the war and its military remain pretty robust,” said Connolly, director of the Eastern Advisory Group and a fellow at the Centre for Russian, European and Eurasian Studies.
“Even in the event that Moscow has to run a budget deficit. It’s got plenty of fiscal room to do this. It has an extremely low debt level, it doesn’t need to borrow abroad, it can borrow from domestic sources of cash,” he explained. “And at the moment, it has this very positive cash flow. So for as long as the political will is there in the Kremlin and for as long as export prices remain high, I don’t see any immediate financial constraints confronting the Kremlin.”
Connolly, who spoke on a panel hosted by Washington-based think tank CNAS, added that Russia historically maintains high defense equipment reserves.
“I’d be very surprised if they weren’t high on the eve of the war and therefore, I would imagine that defense industrial enterprises will continue to produce in the months to come,” he said. He also said that Russia has previously shown that it can source Western tech components used in its defense industry despite sanctions.
https://www.cnbc.com/2022/06/14/russia-ukraine-live-updates.html
Russia’s ability to finance the war and defense industry is still robust, sanctions expert says
Coordinated global sanctions may not immediately affect the Kremlin’s ability to finance its defense industrial base or its ongoing war in Ukraine, Russian economy expert Richard Connolly said.
“The Russian state’s ability to finance the war and its military remain pretty robust,” said Connolly, director of the Eastern Advisory Group and a fellow at the Centre for Russian, European and Eurasian Studies.
“Even in the event that Moscow has to run a budget deficit. It’s got plenty of fiscal room to do this. It has an extremely low debt level, it doesn’t need to borrow abroad, it can borrow from domestic sources of cash,” he explained. “And at the moment, it has this very positive cash flow. So for as long as the political will is there in the Kremlin and for as long as export prices remain high, I don’t see any immediate financial constraints confronting the Kremlin.”
Connolly, who spoke on a panel hosted by Washington-based think tank CNAS, added that Russia historically maintains high defense equipment reserves.
“I’d be very surprised if they weren’t high on the eve of the war and therefore, I would imagine that defense industrial enterprises will continue to produce in the months to come,” he said. He also said that Russia has previously shown that it can source Western tech components used in its defense industry despite sanctions.
https://www.cnbc.com/2022/06/14/russia-ukraine-live-updates.html
Join the InvestorsHub Community
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
