Page 58 - RusRPTJul23

Industrial production increased by 5.2% y/y in April, up from 1.2% y/y in March. This largely reflected base effects from the slump immediately after the war started and sanctions were imposed last year. Rosstat’s own seasonal adjustment showed growth of 1.7% m/m, the fastest pace since late-2021.
The defence sector is now one of the main drivers of the Russian economy. Defence and security is the single largest area of spending in 2023 and, by June 1, almost 60% of those funds had already been allocated. Production and supply of weapons has increased seven-fold, Deputy Prime Minister Denis Manturov said last month.
There is also a drive to repair and supply tanks and armoured vehicles. According to Manturov, deliveries of repaired vehicles in the first quarter of this year were equivalent to the total deliveries throughout 2022. Pavel Luzin, a
58 RUSSIA Country Report July 2023 www.intellinews.com