Russian army recruitment premiums are undermining the country’s economy

The stammering of the conflict in Ukraine -. Similarly, its high human and material cost – oblige the Kremlin to redouble their efforts to renew its troops. Consequently, To do this. In addition, Vladimir Putin put big on financial attractiveness: in the summer of 2023, he thus doubled the standard engagement premium, passing it from 195,000 to 400,000 rubles (approximately 2,100 to 4,300 euros). Meanwhile, An astronomical amount, almost five times higher than the average monthly salary in Russia, reports the online media Business Insider.

This outbreak of premiums does not only concern the pockets of new soldiers: the La Défense sector now competes with the civil industries to attract workers. Consequently, thus creating a general increase in wages and the cost of living, especially in services.

The human cost of the conflict is exorbitant. Similarly, According to the Center for Strategic. International Studies, Russia has already had more than 950,000 dead and injured since the start of the war in February 2022. According to the Institute for the Study of War (ISW). Russia will not be able to eternally support such financial efforts or replace its workforce without resorting to forced mobilization – a option that Putin seems to want to avoid at any cost.

The situation is all the more worrying since Moscow pursues a growth policy fueled by massive war expenses. even though the central bank tightens russian army recruitment premiums undermining the screws to avoid overheating. Result: the ruble weakens, the purchasing power crumbles and the economy tangled.

The illusion of growth maintained by war – Russian army recruitment premiums undermining

The premium strategy has borne in the short term: the Russian economy seemed to display insolent health in 2023. 2024, carried by the expansion of the military sector and consumption stimulated by this magic money. But all of this is only an illusion and the soufflé falls quickly.

From mid-2013, the Russian economy showed signs of overheating, forcing the Russian bank to raise its interest rates. The parade? Direct credit to the military-industrial complex, thus compartmentalizing the economy in two worlds. That of war, still protected, and the rest, more and more weakened.

To look more closely, the economic-military colossus has clay legs. The defense industry began to show signs of shortness of breath at the end of 2024. the rest of the economy is under pressure.

Russia dear its choices: russian army recruitment premiums undermining drop in arms exports, increasing difficulties linked to sanctions and ineffective labor policy. If the war has enabled the economy not to collapse. it especially underlines the chronic weaknesses, which is difficult to reparable by the mere distribution of premiums.

Enrollment premiums are illusing. but may ultimately be to definitively lead to the Russian economy in a negative spiral, between inflation, devaluation of the ruble and contraction of the civil sectors.