NATO on the Russian economy: Probably can finance the war until 2027, but the further it goes, the worse it gets
Russian dictator Vladimir Putin (Illustrative photo: EPA)

The aggressor country, Russia, may be able to finance the war against Ukraine until 2027, but the longer it remains in a state of war economy, the worse the consequences will be for it after the end of hostilities. According to the correspondent of LIGA.net in Brussels, a senior NATO official said at a briefing before a meeting of NATO foreign ministers.

He noted that Moscow's revenues from oil and gas fell by 20% (about $20 billion) compared to last year: now energy revenues account for 25% instead of 30%, which forced the tax reforms in the Russian Federation.

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"The Russian economy is under increasing strain. It is likely to be in recession, and sanctions are affecting trade, access to technology, and international financial relations," the top NATO official said.

The official reminded that Russia's Sovereign Wealth Fund has been reduced from $150 billion to $37 billion: "So all this continues to have an impact."

He added, however, that although Russia is under financial strain, it is likely to be able to finance the war at least until 2027: "So, 2026 it will be able to hold out."

The top official added that, on the one hand, "we have a picture of Russia that is able to stitch everything together, that is able to somehow get through," but on the other hand, Moscow has turned its economy into a military one.

"It's going to be very difficult to come out of this with a severely depleted sovereign wealth fund, which will have really devastating consequences for the population if you look at the number of people who have died and been seriously injured. So they can hold out for a while longer, but every day that they hold out just adds to the challenges that Russia will face when it's over," he concluded.