2023-06-22 23:16:00
Russia unexpectedly stopped the publication of detailed data on budget spending, plunging public finances into deeper secrecy as the government grapples with rising costs related to the war in Ukraine.
The Ministry of Finance stopped the disclosure of high-frequency disbursements on its electronic budget portal, which previously reflected up-to-date information on spending in different categories. Statistics allowed analysts to examine spending trends and calculate how much of the budget was spent on activities considered classified.
Russia’s Finance Ministry and Treasury did not respond to a request for comment. The Ministry continues to publish monthly budget reports that include unclassified spending figures with a lag of a week or more.
Russia’s invasion of Ukraine impacted the price of wheat and corn
Russia already stopped the publication of crucial data, including reports on oil production, after the United States and its allies imposed sanctions in response to President Vladimir Putin’s invasion of Ukraine in February 2022. As the war dragged on, authorities also began to maintain a unprecedented share of their spending out of public scrutiny.
In December Putin said that “there were no limitations” on military spending for the war.
Meanwhile, the federal budget deficit reached 3.41 trillion rubles ($41 billion) in the first five months of 2023. It dropped slightly in May but exceeded the full-year plan by almost a fifth. Energy revenues shrank by more than a third last month, hurt by lower crude prices amid international sanctions and reduced gas exports to Europe.
little transparency
The budget is becoming less transparent and Russia faces greater country risks that reached a record in the Geoquant indices this month.
The lack of disclosure also runs counter to efforts by some top officials to ease restrictions.
“There will be no investment without disclosure of information,” central bank governor Elvira Nabiúllina told the country’s upper house of parliament on Wednesday. “So we need to restore the publication of financial statements.”
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