Assessments

Russia Prepares to Slash Its Budget

Jan 20, 2015 | 10:15 GMT
A woman in Moscow walks past a sign showing the Russian ruble's value compared the the U.S. dollar and euro.
A woman in Moscow walks past a sign showing the Russian ruble's value compared the the U.S. dollar and euro.
(KIRILL KUDRYAVTSEV/AFP/Getty Images)

In the coming weeks, the Russian Cabinet and state Duma will draw up proposals for cuts to the Russian state budget for 2015. According to Russian Finance Minister Anton Siluanov, the government could cut 10 percent of funding to all sectors except defense. This drastic proposal comes as new economic indicators show that Russia's economy is declining more quickly than expected. The budget cuts will exacerbate anxieties about Russia's economy and financial sector and threaten the economic well-being of the Russian population, the Kremlin's elite, the oligarch class and the state's strategic projects. Thus, the Kremlin will prioritize various players and sectors while seeking a longer-term de-escalation with the West that could relieve some of the economic pressure on Russia....

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