Since September last year, when Vladimir Putin announced the first mobilization since World War II, Bloomberg writes that the volume of money in the Russian economy is growing at a record pace. According to data from the Russian Central Bank: 1.4 billion rubles in the last 10 months.
Money floods the Russian economy
It turns out that the so-called Wagnerian. It is a private mercenary force – Ruthless and effective in its actions – used by Russia to carry out military operations not only in Ukraine, but also to strengthen Russia’s influence in Africa and the Middle East.
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The Wagnerodes wreaked havoc in the Ukraine, especially at the start of the war. Funding Wagner’s mercenaries – according to US estimates, it numbered 50,000. Soldiers fighting in Ukraine – has become one of many sources of paper money for the Russian economy.
The Wagner group is led by Yevgeny Prigozhin, who rebels against the Kremlin and threatens to overthrow Vladimir Putin. According to his reports, mercenaries are paid in “black” money. Wagner’s mercenaries receive benefits including bonuses and a monthly salary of $240,000. Ruble. According to Bloomberg, the influx of paper money into the market is also fueled by high compensation paid to relatives of fallen Wagnerians.
According to Bloomberg sources, compensation for the death of Wagner’s mercenary will reach 5 million rubles ($60,000).Apart from his salary. According to women interviewed by Bloomberg, bags of money are usually handed out at specific points. There are no documents to prove their legal source, which is why people avoid depositing this money in banks.
Restrictions on banking transactions are a major factor in the decline of monetary transactions in Russia. War and its associated boundaries place you in society. Russians withdrew 2.2 trillion rubles from bank accounts. Paper money also reigns in settlements in foreign trade.
According to Alexander Isakov, a Russian economist quoted by Bloomberg, the expansion of money causes changes in the economy, none of them good. He says the rising demand for cash reflects less trust in local banks and greater anxiety about an uncertain future among households who want to keep cash at home despite inflation. Issues related to the gray economy and tax evasion are also growing.
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