Recruitment for the War Against Ukraine Is Devastating the Economy of russia’s Provinces

Recruiting for the war against Ukraine is turning into a personnel and financial disaster for russia’s regions. To keep up with the recruitment pace relentlessly demanded by the kremlin “elite”, the constituent entities of the federation are forced to increase payments not only to the contract soldiers themselves but also to the intermediaries who recruit them. In the first four months of the year, the regions spent at least 3.2 billion rubles on recruiter fees – about 75% of last year’s total.

The regional budget is the very same wallet used to finance road repairs, healthcare, bonuses for contract soldiers, and payments to recruiters all at once. According to the accounts chamber, 56 regions of the rf ended the first quarter with a negative balance, while the number of regions with a deficit exceeding 10% rose to 35. Under these circumstances, additional spending is possible practically only by cutting social programs.

Despite this, the kremlin – and putin personally – continue to burden the provinces with new demands and plans for their implementation. At the same time, moscow has established a system that shifts responsibility for the crisis onto the governors, while reserving for itself the exclusive right to dictate and demand. This is most acutely felt in the frontline regions: instead of receiving additional funding, the governors of kursk, belgorod, and bryansk regions have been held personally accountable for infrastructure and logistical failures. Since last October, the kremlin has also replaced the mayors in 19 regional capitals.