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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.

Eudora Koepp 6mo ago

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