Russia hiding deep crisis in key economic sectors – Ukrainian intelligence
Vladimir Putin, Russian President (Getty Images)
A number of key sectors in Russia's economy are in crisis, but Moscow is trying to hide it, according to Foreign Intelligence Service of Ukraine.
According to Ukraine's Foreign Intelligence Service, crisis trends are affecting several major sectors of the Russian economy — including coal mining, oil refining, construction, the automotive industry, and logistics. These sectors together account for roughly 17% of Russia's federal budget revenue.
"Some 52% of the economy is in a state of actual stagnation, primarily in the manufacturing sector," the intelligence report stated.
The agency explained that the main reason for the crisis is that over 40% of Russian companies have liabilities three times greater than their profits. At the same time, working capital is increasingly dependent on accounts payable, as bank loans are both prohibitively expensive and largely inaccessible.
"In order to conceal the real statistical data and prevent panic among the Russian population regarding the financial situation, the Russian authorities have classified information about the economy and foreign trade as state secrets," the intelligence report added.
According to the agency, the Kremlin will now only release selective economic indicators that portray a favorable image, in an effort to reassure the public.
Putin's outbursts
Earlier, Russian President Vladimir Putin lashed out with threats over negative economic forecasts published by Western analysts.
Specifically, the Kremlin leader claimed that the West "keeps burying Russia while they themselves are about to die."
