**Russia’s War Effort in Trouble**
The Institute for the Study of War (ISW) has reported that Russia is facing significant economic, demographic, and defense industry challenges. The country is struggling with inflation, labor shortages, and a slowing economy.
**Economic Woes**
Russia’s economy is under pressure due to Western sanctions and a decline in oil prices. Inflation has risen to 9% as of August 2024, making it difficult for the government to fund its military efforts. The Kremlin has tried to reduce costs by modifying compensation policies for wounded servicemen.
**Changes to Military Compensation**
Russia’s President Vladimir Putin signed a decree reducing payments for wounded servicemen from three million rubles to one million rubles or even less in some cases. This move sparked backlash among Russian ultranationalist bloggers who criticized the Kremlin for reneging on promises to recruits.
**Defense Industry Suffering**
The high interest rates set by the Russian Central Bank have affected the country’s defense industrial base (DIB). The DIB is struggling to produce enough military equipment, with Russia losing hundreds of tanks and artillery barrels each month. Domestic production meets only a small fraction of these losses.
**Demographic Challenges**
Russia’s population continues to decline, with over 600,000 people leaving the country annually until 2032. Labor shortages have led to greater reliance on migrant workers, but xenophobic rhetoric and legislative barriers hinder effective integration.
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