Russian Offensive Campaign Assessment, November 2
November 2, 2022 - ISW Press
Russian force generation efforts combined with Western sanctions are having long-term damaging effects on the Russian economy, as ISW has previously forecasted. Financial experts told Reuters that the Kremlin will face a budget deficit that will “drain Moscow’s reserves to their lowest level in years” due to projected decreases in energy revenue, sanctions, and the cost of Russian mobilization. One expert predicted that payouts to mobilized men including social benefits may cost the Kremlin between 900 billion rubles and three trillion rubles (around $14.6-$32.4 billion) in the next six months. The number does not account for payouts to other categories of servicemen within the Russian forces such as BARS (Combat Army Reserve), volunteer battalions, and the long-term commitment to veterans' payments to contract servicemen, volunteers, non-military specialists who moved to occupied territories, and proxy fighters. ISW previously estimated that one volunteer battalion of 400 servicemen costs Russia at least $1.2 million per month excluding enlistment bonuses and special payments for military achievements.