The Russian military-industrial complex is experiencing economic decline, as noted by the Center for Countering Disinformation at the National Security and Defense Council. Tank, armored vehicle, and metal production plunged by 6-20% in September.
'Rosstat conceals the scale, but even official statistics show that GDP growth has stopped, budget revenues have fallen by 21%, and the deficit is five times higher than planned figures. Since January 1, the Kremlin has raised VAT to 22%, taking away benefits from small businesses, effectively robbing the middle class to fund the war. The prices of chicken and pork have risen by 30%, entrepreneurs are closing down, and Putin along with Patrushev no longer control the food market'
According to Kovalensky, 'Gazprom' is compensating for losses at the expense of the population, the Ministry of Finance is cutting expenditures, and new US sanctions against 'Rosneft' and 'Lukoil' complicate the situation for the Russian military-industrial complex. The only hope remains the Chinese market, but even this opportunity may be at risk, as a meeting between Trump and Xi will soon take place in Busan, where the future separated from Russia will be discussed.
In recent years, the Russian military-industrial complex not only has not been an engine of the economy but has also suffered significant devaluation due to production decline and pressure from economic conditions and sanctions. The consequences of this may affect the geopolitical and economic situation in Russia in the future.