Russia spent about $115 billion on the war with Ukraine. This is a third of all Russian budget revenues for 2021, - Forbes
Russia is likely running a twin deficit of huge proportions. As long as Russia can access its reserves, the situation is manageable. When reserves are...
... dried up, it is going to be economic Armageddon (hyper inflation, economic collapse, etc.). This is the Venezuela scenario.
@PStyleOne1
Unless China comes to the rescue ?
@ErikJonker Yes, but it will be with a lot of risks (currency risks), and just the budget gap is substantial even for China...(not mentioning the current account deficit, which I think has started to be large...)
China would be lending to a country with a shrinking GDP, under sanctions, and with limited ability to generate revenues. On top of that, China risks secondary sanctions...
I don't think China will take this risk.
@PStyleOne1 @ErikJonker
Why wouldn't china take the risk? If they can control returns via asset flow, I don't see how it's much different than Africas risks..
@skanman @ErikJonker African countries go regularly into debt restructuring. Currently China has several loans in default in Africa, and African countries for the vast majority are not under sanctions
Not sure about the value of Russian assets, if that would be stable over time