Page 29 - Russia OUTLOOK 2024

Since 2013, Russia's GDP per capita has only increased by 5%, which is lower than the world average and most developing countries. Prior to the Ukraine conflict Russia's GDP per capita was just 2% below the global average, but this gap has now widened significantly.
Direct costs: The annexation of Crimea in the aftermath of the Maidan protests has proved to be a costly endeavour. Crimea remains a significant economic burden, ranking among the top 10 most subsidised regions in Russia. Estimates suggest that Russia spends billions of rubles annually on the peninsula's maintenance and development.
Russia's annexation of four more regions of Ukraine during the full-scale invasion in 2022 has also imposed substantial financial costs. In 2023, these regions are expected to receive RUB410bn in direct subsidies from the Russian budget, but the overall spending on these occupied territories, including construction and infrastructure development, remains challenging to estimate accurately.
Indirect costs: In addition to these direct costs, Russia's aggressive actions have led to extensive sanctions from the West, making it the most sanctioned country globally. These sanctions have targeted sectors of the Russian economy and specific companies. In response, Russia imposed a
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