The U.S. Claims Russia's Economy Has Been Damaged by the Ukraine War

The Financial Times reported on Thursday, citing a draft from the U.S. Treasury Department, that the conflict in Ukraine has significantly impacted Russia's economy, raising prices in the country and forcing Moscow to allocate one-third of its budget to defense matters. The newspaper quoted Rachel Lingas, the senior sanctions economist at the department, stating that if Putin had not initiated the war in Ukraine, the Russian economy would have grown by more than five percent. According to the Financial Times, Moscow has spent over $100 billion, or nearly one-third of its total expenditures in 2023, on defense costs. The report indicates that the backbone of the Russian economy, revenues from oil and gas exports, has been damaged this year, although there has been a slight improvement in recent months with the strengthening of oil prices. The Financial Times also noted that Western sanctions on Russian oil trade have not had as much impact as initially anticipated. NATO is increasing its military budget by 12 percent to address 'common security challenges.' Russian-linked hackers claimed responsibility for a cyber attack on Ukraine's mobile network. The European Union is deciding on the commencement of Ukraine's membership negotiations; Hungary has threatened to veto. A journalist imprisoned in Russia has been accused of spreading false information about the army. Dozens were injured in Russian missile attacks on Kyiv.