Economist Ustenko: Why the Collapse of the Russian Economy Will Not Happen Now

Economist Oleg Ustenko on the Resilience of the Russian Economy

Oleg Ustenko, a renowned economist, assures that we should not expect a rapid collapse of the Russian economy. On the contrary, according to him, in the short and medium term, the Russian Federation demonstrates certain resilience even under external conditions of sanctions and military expenditures.

On Yuriy Romanenko's channel, the economist expressed the need for a sober assessment of the situation and warned about the dangers of primitive optimism.

The Danger of Primitive Optimism

'I believe that this is a colossal danger, to think about this, especially for us as Ukraine, which must soberly assess the situation. One should not project their own desires or our collective wish for a total collapse of the Russian economy as a real scenario', - emphasized Ustenko.

The economist warned that the expectation of the collapse of the Russian economy can be dangerous, especially in the context of increasing sanctions pressure.

Three Parts of the Russian Budget

Ustenko revealed the structure of the Russian budget, indicating that a significant part goes to the military-industrial complex. According to him, this year around 150 billion dollars have been allocated to this sector, with plans for even more funding next year.

'There is still a lot of hidden financing. This pile of hidden financing might mean that even this year, the Russians are spending about 200 billion dollars on their military-industrial machine', - the expert explained.

Compared to Ukraine, Russia spends significantly more on this sector, which, according to Ustenko, is important to consider when analyzing the situation.

The Second and Third Parts: Repressive Apparatus and Social Programs

The Russian budget also includes expenditures for the repressive apparatus and social programs. The economist emphasized the potential threats from Russia associated with the intensification of its military actions not only in Ukraine but also in other countries.

Critical Forecast

'Can we be sure that the economy will collapse now? No', - Ustenko stated categorically, calling for cold realism in assessing the opponent's prospects.

Oleg Ustenko believes that it is necessary to build a strategy considering the real capabilities of the Russian economy, rather than relying on illusory hopes for its swift collapse.