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Russia switches to ‘wartime economy’: daily

Vladimir Putin has moved Russia into a regime of “unprecedented restrictions” with the aim of boosting the country’s war production, the Euromaidan Press news website wrote on Tuesday, quoting the Russian independent daily Moscow Times (MT).

As the MT reported, the Russian strongman allegedly told 19 members of the new “politburo” the country was facing “serious challenges” and the economy was under “unprecedented constraints”, which together required a complete overhaul of the country’s governance mechanisms.

Furthermore, Putin pointed out that the existing issues should be resolved “more quickly and efficiently,” even if this requires changes to existing procedures.

“If we work within the framework of standard bureaucratic procedures, hiding behind formalities, we will not get the desired result in any direction,” he reportedly said.

As pointed out by the daily, quoting its source in the Finance Ministry, Russia is switching to a “military-type economy,” meaning that “everything related to development – infrastructure, education, health – is receding into the background.”

This year’s Russian budget spending on national defence will exceed the initial plan by a third, or RUB 1.2 trillion, to RUB 4.2 trillion, and next year it will increase by another RUB 300 billion, the Moscow Times reported. “Financing of domestic security and law-enforcement agencies, which must ensure the regime’s stability, will increase even more, by 1.5 times,” it added.

The daily recalled that laws allowing the country’s government to put the economy on a war footing were passed back in the spring session of the State Duma and in October, following the start of mobilisation, Vladimir Putin signed decrees introducing martial law in the occupied regions of Ukraine, and special regimes in the regions bordering it and two federal districts.

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