Russia’s Lavish Soldier Bonuses Strain Economy Amid War and Labor Shortages
📷 Image source: i.insider.com
Russia’s aggressive military recruitment campaign, offering hefty bonuses to volunteers, is placing significant pressure on its already struggling economy. According to a report by Business Insider, the Kremlin has been paying enlistment incentives as high as $10,000—equivalent to nearly five years of the average Russian salary—to replenish its forces in Ukraine. These payments, combined with soaring wartime expenditures, are exacerbating labor shortages and inflation, further destabilizing the nation’s financial health.
Analysts warn that the policy, while temporarily boosting troop numbers, is unsustainable. The mass recruitment of working-age men has drained critical sectors like manufacturing and construction, leading to wage spikes and production delays. Meanwhile, defense spending now consumes over 6% of Russia’s GDP, diverting resources from infrastructure and social programs. Independent economists estimate that military-related costs could push the federal deficit to record levels by 2025.
Additional reporting by The Moscow Times highlights how regional governments are scrambling to offset labor gaps by recruiting migrants and retirees. However, these measures have failed to counterbalance the exodus of skilled workers. With Western sanctions further crippling economic growth, experts suggest Russia faces a prolonged period of stagnation, even as the war continues to demand vast financial and human resources.
