Why Russia Lacks Funds for Road Construction
Road construction in russia, which is predominantly funded by the state budget, has become yet another industry plunged into systemic crisis due to the war.
▫️national association of infrastructure companies in russia has been forced to admit that currently 47% of the country’s road construction firms are on the verge of bankruptcy, and another 35% are in the high-risk category.
The association vaguely attributes the situation to an “archaic system of pricing for state contracts,” which prevents companies from receiving adequate profits. However, the real reason behind this crisis is the government’s prioritization of war spending against Ukraine, amid a sharp decline in budget revenues due to cheap oil and international sanctions.
By pouring massive funds into prolonging the war, kremlin is attempting to cut back on other critical expenditures—pushing many sectors of the economy into an even deeper crisis.
