Russia’s economy to become increasingly dependent on defence industrial base, says UK intelligence
Pravda Ukraine
UK intelligence predicts that in 2025, Russia’s economy will become even more reliant on the defence industrial base due to inflationary pressure and corporate defaults in civilian industries.
Source: UK Ministry of Defence intelligence update on 3 March, as reported by European Pravda
Quote from intelligence: “It is almost certain that inflation in Russia will be higher than the Central Bank of Russia (CBR) target of per cent in 2025. This is despite CBR efforts to reduce inflation by increasing interest rates from 7.5 per cent in June 2023 to 21 rep cent in December 2024. The actual rate of inflation in 2024 was likely higher than the officially reported figure.”
Details: The UK Ministry of Defence expects that business pressure will also increase if interest rates remain high in 2025.
Quote: “The vast majority of any corporate defaults will almost certainly occur in civilian industries, further increasing reliance on the military industrial complex to drive economic activity.”
Background:
- UK intelligence recently analysed the state of the Russian forces in the third year of its full-scale war against Ukraine and detailed its losses.
- Additionally, UK intelligence reviewed data from the independent Russian outlet Verstka, which reported that Russian military command is forcing men mobilised in 2022 to sign contracts with the Ministry of Defence.
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