RuZZia will be spending from their wealth fund to cover budget deficit.
“Siluanov added that about 3-4 trillion rubles ($51.59-68.79 bln) from the National Wealth Fund of Russia will be allocated to finance the budget deficit.”
https://tass.com/economy/1466353
Russia (”officially”) says that its Federal Government budget deficit is now 2% of GDP.
But its whole total budget before the invasion was only about 1.4% of GDP (about $250 billion, out of $1.8 trillion.
Other estimates are that their current budget deficit might be running at a current burn rate of 4 or 5% of GDP.
They have deferred accounting for some expenses until the last day of the year, but they are spending that money now. Other levels of Government are running deficits, as is business broadly (Private Sector). They are gobbling through their savings at a sickening rate.
“Siluanov added that about 3-4 trillion rubles ($51.59-68.79 bln) from the National Wealth Fund of Russia will be allocated to finance the budget deficit.”
That National Wealth Fund had about $175 billion before this invasion, and some portion is likely among those assets frozen in the West. I’d guess half or more.
$50-70 billion announced to be going toward this year’s budget deficit? Not a card that they will be able to keep playing for years on end. Maybe next year as well.
This fund is what pays pensions, like Social Security here.
Next year looks like it could be the end of the line for that, in the new Soviet Union.
Putin is the Master Strategist, who gambled away everyone’s social security, bankrupted the Government, sent the boys to die by the 10’s of thousands, and disgraced Russia and Russians as despicable war criminals.
What’s the upside?