As Russia’s invasion of Ukraine nears its three-year mark, the military’s payments for fallen soldiers are creating a grim reality for families.
A Russian economist, Vladislav Inozemtsev, has calculated that the family of a 35-year-old man who serves for a year and dies in action would receive around 14.5 million rubles, or $150,000, in salary and death compensation, as reported by the Wall Street Journal. This amount does not include additional bonuses and insurance payouts.
In some parts of Russia, this sum is more than what the man would have earned as a civilian working until the age of 60.
“Joining the military and getting killed a year later is economically more advantageous than the man’s remaining life,” Inozemtsev informed the Journal.
These wartime “deathonomics” in Russia have brought prosperity to certain communities, lowering poverty rates to their lowest levels since data collection began in 1995.
By June, the death payments had amassed up to $30 billion over the past year, according to the Journal. In the Tuva and Buryatia regions, bank deposits have risen by 151% and 81%, respectively, since January 2022—before Vladimir Putin initiated his full-scale invasion.
These incentives are necessary to sustain the war machine, as a general mobilization requiring conscription could be politically unacceptable.
Western estimates indicate that over 600,000 Russian troops have been killed or injured in the conflict. Some economists believe that Moscow needs 30,000 new recruits each month to replace casualties. The demand for more troops is so critical that Russia has sought soldiers from North Korea.
In addition, the military is in competition with Russia’s private sector for manpower, with businesses offering lucrative compensation to keep operations running, particularly at weapon production factories for the Ukraine conflict.
This has contributed to high inflation, officially recorded at nearly 10% in September, prompting the central bank to raise its benchmark rate to 21%. Food prices, including potatoes, have surged by 73% since the beginning of the year.
While GDP growth appears stable on the surface, supported by significant military spending, underlying economic distortions and ongoing sanctions have led experts to predict that Russia may struggle to sustain the war on Ukraine beyond 2025.
