In St. Petersburg, payments for recruiting soldiers for the war have been cut by nearly nine times due to the budget crisis

In St. Petersburg, authorities have significantly reduced the amount of the one-time payment for citizens who sign a contract with the Russian Ministry of Defense for the second time in two weeks. Currently, the regional payment amounts to 400,000 rubles (about $4,900), which is nearly nine times less than in early October, when the amount reached 3.5 million rubles (nearly $43,000).

This sharp reduction in bonuses for military personnel is due to acute problems with the city budget. Due to a funding shortfall, the Smolny has already cut spending on social services and public works by 70 billion rubles (about $858 million) and is preparing to reduce the number of civil servants and public sector employees to address the financial instability.

A similar trend is observed in other regions of the Russian Federation, where local authorities are forced to reduce payments due to the depletion of local coffers. In particular, significant reductions in bonuses have been recorded in Mari El (from 2.3 million rubles to 400,000 rubles—from about $28,200 to $4,900), Mordovia (from 3 million rubles to 800,000 rubles—from about $36,800 to $9,800), as well as in the Irkutsk and Novosibirsk regions amid growing regional budget deficits.

Source: the publication “Fontanka.”

As a reminder, consumer sentiment in Russia is rapidly deteriorating, confidence in the economy is declining, and anxiety is rising. This was reported by the Foreign Intelligence Service of Ukraine. Lending to households in Russia has fallen to a six-year low.

After three years of unexpected economic growth, Russia is facing a sudden slowdown—war expenses, inflation, and falling oil prices have begun to weigh on an economy that, until recently, seemed resilient to sanctions.