Russia’s subsidies to occupying “authorities” in Ukraine amounted to US$7.6 billion in 2023
Pravda Ukraine
Russia allocated a total of RUB 675 billion (about US$7.6 billion) in support for the occupied “administrations” in seized territories of Ukraine in 2023.
Source: estimates by Forbes Russia
Details: The Russian occupying administrations in Donetsk, Luhansk, Kherson, and Zaporizhzhia oblasts of Ukraine received RUB 513 billion (about US$5.7 billion) from the federal budget, whereas occupied Crimea was supposed to receive RUB 162 billion (roughly US$1.8 billion).
The magazine estimated that the dependency of the budget of the so-called “DPR” [Russian-backed sham “Donetsk People’s Republic” – ed.] on federal aid in 2023 was 82%, having received RUB 233.9 billion (roughly US$2.6 billion) in subsidies.
The revenues of the occupying administration of the “LPR” [Russian-backed sham “Luhansk People’s Republic” – ed.] consisted of 81.6% of federal subsidies, totalling RUB 188.7 billion (roughly US$2.1 billion) as of the end of 2023.
The income of the occupying administration of Zaporizhzhia Oblast consisted of 89.5% of Russian subsidies, as it received RUB 72.8 billion (roughly US$812.6 million) from the Russian budget. Subsidies for maintaining the occupied districts of Kherson Oblast amounted to RUB 52.2 billion (roughly US$582.2 million), or 86.8% of its total revenues.
Russian-occupied Crimea was supposed to receive another RUB 162 billion (roughly US$1.8 billion) from the federal budget, but Forbes provided no actual figures for it.
This year, the Russian government plans to significantly cut subsidies for financing the occupied territories, up to RUB 430 billion (roughly US$4.8 billion), including Crimea.
Therefore, the level of Russia’s subsidies to occupying administrations will be curtailed as follows:
the occupying administration of the “DPR” – up to 65.6% (up to RUB 137.4 billion or roughly US$1.5 billion);
Crimea – up to 63.5% (RUB 126.7 billion or roughly US$1.4 billion);
“LPR” – up to 63% (RUB 92.6 billion or roughly US$1.03 billion);
Kherson Oblast – up to 74% (RUB 33.2 billion or roughly US$372.6 million);
Zaporizhzhia Oblast – up to 72% (RUB 40 billion or roughly US$449.1 million) in 2024.
Furthermore, Forbes indicates that the subsidies for financing the occupying administrations significantly exceeded last year’s plan. For example, they were 37% higher for the “DPR” than planned. At the same time, the largest source of income of the occupying administrations – about 80% – is personal income tax.
Background: The Russian Ministry of Finance has spent 4 out of 9 trillion roubles (roughly US$45.5 billion out of about US$102.4 billion), or almost half of the liquid part of the National Wealth Fund (NWF), which is the central reserve for a rainy day, in 2023.
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