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Bloomberg: Secret Money Lurking Behind Vladimir Putin's "War Machine"

“According to the data collected BloombergPutin is allocating unprecedented amounts of classified funds to accelerate Russia's largest military buildup since the Cold War, ”says Andrei Biryukov, a newspaper reporter.

“Since 2010, the so-called“ black ”part of the federal budget (what is sanctioned but not detailed) has doubled - to 21% of the budget. Now it accounts for 3,2 trillion rubles ($ 60 billion), ”the publication retells the calculations of the Gaidar Institute (Moscow).

According to the publication, Putin is referring to defense spending as a tool for reviving the economy. “The costs of new tanks, missiles and uniforms underscore the growing militarization, which is resulting in growing shortages and pushing out services such as health care. Thousands of conscripts will be deployed for the first time to commercial enterprises to aid rearmament efforts, ”the article says.

“The government has two urgent tasks: to strengthen security at all levels of society and to promote innovation in order to get out of macroeconomic stagnation,” says Ruslan Pukhov, director of the Center for Analysis of Strategies and Technologies (Moscow). "The solution to both problems lies in the intensification of the development of the military-industrial complex."

The publication cites several figures: the Russian defense budget in 2014 amounted to more than $ 84 billion. “Defense and the related category - national security and law enforcement - are now eating up 34% of the budget, more than doubling from 2010. The United States spent 2014% of its budget ($ 18 billion) on defense and international security in 615, ”the article says.

On May 12, Putin signed documents on the creation of "production companies": recruits will be able to work at defense enterprises instead of serving in conventional military units.

Russia has started to make prepayments for goods and services provided by more than 1300 enterprises and 2,5 million people employed in the defense industry. “Already in the first quarter of the year, about 50% of the defense budget for this year was spent. True, the information about what exactly was paid for is mostly classified, ”writes Biryukov.

The only thing that is not hidden from society is the number of personnel. Igor Sutyagin (Royal United Services Institute, London) wrote: “While in all Western countries the number of“ uniformed manpower ”has decreased since 2011, in Russia the number of personnel from 2011 to mid-2014 increased by 25 %. True, the level set in 2010 (1 million manpower) has not yet been reached. "

According to the organization Global Firepower, in Russia there are about 2,5 million active reservists (with a population of 143 million people), the article says.

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