British military intelligence has claimed that soaring inflation and high interest rates threaten Russia’s ability to maintain high defence spending levels.
In its latest update on the war in Ukraine, the United Kingdom’s Ministry of Defence (MoD) suggested that Moscow may struggle to sustain its war effort due to pressures on its economy.
“Long-term inflationary pressure will highly likely exacerbate pressures on Russia’s ability to sustain high defence spending,” the MoD said in a statement.
The British intelligence dump noted that last month, the Central Bank of Russia (CBR) decided to keep interest rates at their highest level in over two decades, having climbed to 21 per cent from 8.5 per cent before the invasion of Ukraine in 2022.
The Mod claimed that
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