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https://www.themoscowtimes.com/2025/06/24/russian-military-electronics-supplier-faces-shutdown-over-underpriced-state-contracts-a89556

tl;dr: Russia has been forcing companies to supply military contracts at unprofitable prices, essentially forcing the companies to borrow funds on behalf of the state. Additionally, banks are being forced to give military contractors loans. This lets the Russian government shift the debts to the companies, making the budget appear more balanced than it actually is.

“Under Russian law regulating state defense orders, prices for dual-use products are determined by the military.

For example, the Defense Ministry-set price for a single diode is 2,600 rubles ($33) per unit, compared to the 3,600 rubles ($46) the company would need to charge to cover manufacturing costs.”

Officially about 50% of all Russian tax dollars are going towards war. With stuff like this happening, the real amount is clearly even higher.

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Eudora Koepp 6mo ago

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tl;dr: law would being

Brunswick 6mo ago

So... What happens at the end of the war? The companies go out of business, the debts are uncollectable, the bank eats the loss and the ruble is inflated?

Constantin 6mo ago

Now you know why Russia can't stop the war.

Peter Todd 6mo ago

If Russia wins the end of the war means Russia is spending far less money on war, and has the benefit of brand new territories full of loot to steal. They'll have lots of money to pay back everything multiple times over.

Wars of conquest can be extremely profitable if you win.

That's why crushing Russia's economy is so important.

Ziggy 6mo ago

Is there an estimate for how much Russia has spent on war so far?

Peter Todd 6mo ago

A few months ago the Washington Post reported nearly $300 billion: https://www.washingtonpost.com/world/2025/02/24/russia-ukraine-war-cost-statistics-trump-support/

The value of the land and mineral resources Russia has stolen from Ukraine has been estimated at $1 trillion or more. So a "peace" treaty would actually put them in the green in the long term. Especially if the ~$300 billion in seized assets is returned to Russia.

A _lot_ of "ordinary" Russians are profiting from this invasion. For example, it's estimated that something like 1 million have taken stolen Ukrainian houses and apartments, moving into parts of Ukraine occupied by Russia.

These Russians are war criminals and should be executed. Though if captured, they could be put to work doing tasks like landmine clearance for the rest of their lives. We forced Germans, including "civilians", to clean up after their war.

Brunswick 6mo ago

Your last sentence is a non-sequitur. Why is crushing Russia's economy important?

Peter Todd 6mo ago

Obviously because 1) crushing their economy ensures they can't repeat the process, invading another country, 2) it ensures that the invasion is in fact unprofitable, 3) crushing their economy now will certainly end the invasion.

zebra 6mo ago

I always thought that the hopes that russia will run out of money are unrealistic

Brunswick 6mo ago

Its certainly a skillful tactic to insulate the population from inflation due to war