Putin wants to prepare Russia for a decades-long war economy, but this carries risks. Because the consequences of the sanctions haunt him.
MOSCOW – For the first time, more money is allocated to the army and security than to social spending: Kremlin President Vladimir Putin pledges to expand Russia’s war economy more than two years after his aggressive war on Ukraine. The country is preparing for a decades-long war economy, it was said at the 27th Saint Petersburg International Economic Forum (SPIEF).
Russian economist Pyotr Fradkov said: “Today the military-industrial complex is the locomotive of the economy.” Clearly, what many in Russia do not want to acknowledge is that it is precisely this economic dependence on war that will be avenged.
Billions for the army: Putin sends the Russian economy into ruin
Since the Ukraine war, Putin has boosted military spending to increase production in the defense sector. First Deputy Prime Minister Denis Manturov said at the SPIEF, which has been in operation since Wednesday (June 5, 2024), that Putin signed a complete list of instructions to develop the defense sector in order to produce more weapons and ammunition. It ends on Saturday.
The Kremlin is spending the equivalent of about 110 billion euros on defense alone this year. There is also an additional €34 billion for national security and security services. In total, this represents 38.6% of total Russian budget spending or 8% of GDP.
Given Western arms shipments to Ukraine, which also wants to use them to bomb Russian territory, Putin threatened an „asymmetric response” at the forum. In the future, Moscow could supply Russian weapons to those countries that are in conflict with the United States and other NATO members.
Is the Russian economy really as strong as Putin portrays? Oil and gas collapse
Putin also explained that Russia, contrary to many expectations, has performed well so far in the face of punitive measures imposed by the West. Western experts confirm that the Russian economy is relatively strong despite the pressures resulting from the sanctions. But at the same time there are growing fears that the Russian economy may collapse as a result of war-related growth. Professor Hans said that the investments Russia is currently making „are not likely to have a long-term positive impact on the economy.”doctor. Michael Rochlitz, University of Oxford ZDF On June 5, 2024.
Russia currently relies heavily on oil and gas prices. The Russian economy has already suffered devastating declines in gas exports due to the Ukrainian war, as seen in Gazprom’s latest example: the Russian energy giant exported more than 174 billion cubic meters of natural gas to European countries in 2021. But in 2023, Gazprom’s shipments of natural gas to Europe amounted to only 28.3 billion cubic meters, according to the news agency’s calculations. Reuters Offer (as of January 2024). For the first time since 1999, the company did not make any profits. Because of Western sanctions, Putin is finding it increasingly difficult to find buyers for Russian gas. An important gas pipeline project with China is at risk of failure.
Sanctions imposed on the Russian economy affect the financial sector
The sanctions also have similar effects on Russia’s business in the financial sector. Especially since the United States threatened to take tougher measures against institutions providing financial support to Russia, many banks turned their backs on Russia. Chinese banks have suspended payments and stopped accepting yuan payments from Russia. Banks from Türkiye and the United Arab Emirates also retracted their decision. “Blood clots formed in all major vessels,” said former Russian Finance Minister Mikhail Zadornov.
In addition, according to Vladislav Inozemtsev, director of the Moscow Center for the Study of Post-Industrial Societies, Western sanctions generally make transactions more difficult. He said in an interview with the British newspaper The Guardian, that the flow of capital abroad almost no longer occurs because the European Union has closed its accounts to the Russians. world. Oleg Vyugin, former deputy head of the Russian Central Bank, said the Russian economy resembles a “closed steam boiler full of money.” world. (With materials from EPA)
In an interview, Reinhold Messner, 79, settled scores with his sons. Now the son of the mountaineering star is coming forward – and revealing new details.
Updated as of July 25, 2024 at 2:45 PM: Reinhold Messner caused a stir in an interview last weekend. The mountaineering legend described, among other things, the early inheritance of his sons as “one of my biggest mistakes”. The 79-year-old revealed that “the question of who got more was the main focus”. But now son Simon responds: “It’s unfortunate and sad.” Bavaria Radio His father’s accusations.
He himself greatly values the inheritance he received from his father: two mountain farms in Vinschgau in South Tyrol, and he always passed this on to his father. „That’s why I fundamentally don’t understand this accusation,” says Simon Messner. He sees no similarity between the inheritance and the break in the family, which happened gradually and had other causes, says Simon Messner. Father Reinhold did not want to comment further on this topic.
After inheritance dispute: Mountaineering legend Reinhold Messner 'on the brink’
First report dated July 21, 2024: Bolzano – Mountaineering legend Reinhold Messner turns 80 in September. But things don’t always go well for Messner, especially in his old age – he recently drew attention to himself with a thoughtful Instagram post in which he wrote: “I’m coming to the end.” Now the 79-year-old is talking about the circumstances in his family. In an interview with Pharmacy Journal Miser gives insight into his relationship with his children, which was strained by his decision to leave the majority of his assets to them in his will before his death.
Reinhold Messner talks about the biggest mistake of his life – the 79-year-old was 'on the edge of the abyss’
“One of my biggest mistakes was leaving them the majority of my assets in my will before I died,” Meisner says of his children. “They don’t understand that everything was a gift and don’t appreciate my generosity.” This is very disappointing to him, especially compared to his childhood, when there was nothing to bequeath but respect and gratitude.
Meisner explains to Pharmacy Journal “We were a big family, with many brothers and sisters, and we took care of our parents when they were old. For me, it was the opposite. The moment I distributed my material inheritance to my children and my wife, the family collapsed. The question of who got more was at the forefront and I was on the edge of the abyss when I was 75 years old.
Reinhold Messner
September 17, 1944
Brixen (South Tyrol)
Member of the European Parliament (1999-2004)
Climbing Mount Everest Without Oxygen
Asked if he would like to improve the relationship again, Meisner replies, “What parent wouldn’t want to?” He stresses that each person should find their own path rather than following in the footsteps of others: “Everyone should do it. Follow their own path, go their own way.”
’I’m Coming to the End’: Reinhold Messner’s Fans Worried
Recently, Messner caused concern among fans with his Instagram post: “I’ve reached the end, this is reality,” the mountaineering legend used the words to say. Messner’s post caused great concern among some fans.
“I leave with a clear conscience and the knowledge that I was a good person, did my best, was a loving father, a good friend, and a good brother,” Meisner continued in his post. “Now it’s time to live my last dreams and love the people who mean the most to me, but most importantly, gratitude.”
Many years after his climbing career ended, Messner remains one of the world’s most famous mountaineers. He was the first person ever to climb all eight-thousanders. However, in his native South Tyrol, a different Messner has been in the spotlight in recent months: his younger brother Hubert Messner, 71, a former pediatrician who also took part in numerous expeditions, recently became health minister for the northern Italian region.
Recently, there was also a fuss about the Guinness World Records being stripped of Reinhold Messner’s record. The mountaineer spoke of „conspiracy theories”.
’Symbolic’ Consequences – EU Moves Ministerial Meeting From Budapest to Brussels
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Hungary, led by Viktor Orban, has held the presidency of the Council of the European Union since July 1.
Source: German Press Agency/Alexander Zemlianichenko
There is still a lot of anger in Brussels about Viktor Orbán’s “peace mission”: EU foreign policy chief Josep Borrell wants to ban Budapest from the next meeting of foreign and defence ministers. But the shot could backfire.
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DrThe European Commission is drawing further conclusions from Hungarian Prime Minister Viktor Orban’s unilateral actions: EU foreign policy chief Josep Borrell said on Monday that upcoming meetings of foreign and defence ministers will be held in Brussels – not in the Hungarian capital Budapest.
Borrell said after a ministerial meeting in Brussels that he had taken the decision after a majority of ministers spoke out against Hungary and wanted to impose „symbolic” consequences on the country. According to Borrell, 25 foreign ministers condemned Orban’s behaviour. The Hungarian received support only from Slovakia.
But Borrell has also been heavily criticised for his uncoordinated move to cancel the Budapest meeting. “Spain does not support a boycott in the EU,” Foreign Minister José Manuel Albares said. Luxembourg’s Foreign Minister Xavier Bettel called the idea of a boycott “nonsense”. Bettel said he would rather go to Budapest and express his opinion to the Hungarians. Germany, France and the Netherlands have also voiced opposition to Borrell’s proposal.
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In Brussels, it cannot be ruled out that Borrell’s boycott campaign will ultimately backfire: several ministers are now said to be staying away from the Brussels meeting on 28-30 August in protest.
Read also
Hungary has held the six-month rotating presidency of the Council of the European Union since the beginning of July. Immediately after that visit began, Orbán made a surprise visit to Ukraine, Russia and China on a self-proclaimed “peace mission.” He also met with US presidential candidate Donald Trump. His meetings have drawn criticism from EU member states.
The European Commission had already reached its first conclusions a week ago. A Council spokesman had said that no commissioners would be sent to informal meetings of the Hungarian Council Presidency, but only senior officials. The decision was taken by European Commission President Ursula von der Leyen. There will also be no customary inaugural visit by the Commission to the new Council Presidency.
After Biden’s withdrawal from the US election campaign, Vice President Harris appears to be the new Democratic nominee. The Trump camp and the Republicans have already adjusted their strategy.
While US President Joe Biden is widely respected by Democrats for his decision, the reaction from Republicans seems somewhat different.
The crowd began to boo when Trump’s running mate, J.D. Vance, declared at a rally in Ohio: “Joe Biden is out of the race.” In his hometown of Middletown, the newly elected Vance has now thrown himself into the campaign.
That has changed dramatically for the Republican Party as a result of Biden’s withdrawal. So they are immediately adopting a new strategy and portraying the planned change of candidates as undemocratic.
Republicans make serious claims
Vance, for example, rails against the supposed Democratic elite who, in his view, were pulling the strings in the background: “Now to nominate someone else because George Soros and Barack Obama and a few elite Democrats decided behind closed doors to prioritize the Democrats.” Joe Biden is out “This is a threat to democracy. It’s not the Republican Party that fights for democracy every day.”
House Republican Leader Mike Johnson goes a step further. On CNN, he says that in some states you can’t just change the nominee. 14 million people voted for him in the primary — and Biden’s withdrawal now renders their votes invalid.
In the US states of Wisconsin, Georgia and Nevada, there are already regulations on how to conduct a candidate swap, but since Biden has not yet been formally nominated, it probably won’t help that Republicans go to court much.
The second strategy directly targets Biden’s likely successor, current Vice President Kamala Harris. Donald Trump, who is running for the White House as a Republican, has already made a pitch at a campaign event in Michigan..
Trump, who mispronounced her name, says he just calls her „Laughing Kamala.” „You can tell a lot from her amazing smile,” the 78-year-old said. „She’s crazy.”
But the attacks are not limited to the personal level: Trump and Republicans are also blaming Harris on the political level — for everything the Biden administration has done.
Just an hour after he announced he would not run for re-election, the first TV ads came out: Harris was accused of covering up Biden’s supposedly poor health.
The short ad reads: “Kamala knew Joe couldn’t do the job, so she did it.” What they achieved was an invasion of the border, soaring inflation, and the death of the American dream.
Attack Surface When It Comes to Immigration
The immigration issue in particular could make Harris vulnerable to Republicans. As vice president, President Biden has tasked her with immigration policy.
“She didn’t do her job,” Texas Republican Gov. Greg Abbott said on Fox News. “Harris is a failure.” Abbott said Americans should reject her at the ballot box in November.
It remains unclear whether Kamala Harris will actually run as a Democrat. Republicans are certainly preparing for that.
