Key facts
- United Russia now controls 349 of the State Duma's 450 seats.
- Around 50 Ukraine war veterans are entering parliament.
- Russia's economic growth is expected to be around 0.6% this year.
- Federal deficit reached 5.8 trillion rubles through August.
- Oil and gas revenues are down 16.7%.
- Military spending will increase by 27% next year to 17.1 trillion rubles.
Russia's recent parliamentary elections have resulted in a strengthened political position for the Kremlin, with United Russia securing its largest majority ever in the State Duma and an influx of Ukraine war veterans. Despite the appearance of consolidated political power, the country faces significant economic headwinds. Moscow anticipates economic growth of only around 0.6% for the current year, accompanied by falling capital investment and high interest rates at 14%. The federal deficit has reached 5.8 trillion rubles through August, with oil and gas revenues down by 16.7%. More than half of senior Russian business executives surveyed by RBC anticipate deteriorating conditions by year-end.
However, the Kremlin appears to have the financial means to sustain its military operations. Unemployment remains exceptionally low, and real wages are increasing. High oil prices are projected to add as much as 1 trillion rubles to the liquid portion of the National Wealth Fund this year. The government's new budget reflects an intention to continue fighting, with military spending slated to rise by 27% next year to 17.1 trillion rubles, funded through increased taxes, borrowing, and cuts in other areas.