Updated July 2nd, 2022 at 16:01 IST
Russia mobilizing its economy and industries to fuel the war in Ukraine: Report
Russian President Vladimir Putin is likely mobilizing his country’s economy and industry to sustain the ongoing war in Ukraine, Institute for Study of War said.
Russian President Vladimir Putin is likely mobilizing his country’s economy and industry to sustain the ongoing war in Ukraine, the Institute for the Study of War reported. In its latest report, the institute claimed that the Kremlin has proposed special amendments to the country's law in order to fuel its war machine. The report came days after the Ukrainian administration labelled Russia as a “terrorist state” accusing it of deliberately killing innocent civilians.
“The Kremlin proposed an amendment to federal laws on Russian Armed Forces supply matters to the Russian State Duma on June 30, that would introduce “special measures in the economic sphere” obliging Russian businesses (regardless of ownership) to supply Russian special military and counterterrorist operations,” the Institute sais in a state,ent.
New amendments could change employee contract
Elaborating on the proposed constitutional change, the institute said that it would prohibit Russian businesses from refusing to accept state orders for special military operations. In addition, it would also allow the Kremlin to change employee contracts and work conditions, such as forcing workers to work during the night or on federal holidays.
It is pertinent to note that Putin is pulling all stops to capture the industrial region of Donbas as the war lingers on for its fifth month.
While Russian Federation is diverting funds to support war in Ukraine, economic repurcussions of the conflict are also being seen in Europe. Triggered by coronavirus lockdowns and sky rocketing fuel prices amid war in Ukraine, inflation in the Eurozone reached a record high last month. In its latest report, EU’s statistics agency EuroStats said that prices of goods and services rose by 8.6% in June. The inflation rate was higher than the 8.1% surge in May, which itself was the highest rise since 1997 (two years after Euro was launched).
The prices of consumer goods were particularly affected. As per the agency, the cost of food, alcohol and tobacco rose by nearly 9% annual rate last month. Prices of non-energy industrial goods showed a 4.3% inflation rate, 0.1 % higher than that in May. However, providing respite to consumers, prices of services cooled slightly from 3.5% in May to 3.4 % in June.
Published July 2nd, 2022 at 16:01 IST