With troops in Ukraine, Russias defence spending leaps 40%

　　div classBodysc17zpet90 cdBBJodivpReuters – Russia‘s defence spending was up nearly 40 in the first four months of the year, according to preliminary data released by the finance ministry on Wednesday, almost three months into Moscow’s largescale military campaign in Ukraine.p

　　pRussia spent 1.7 trillion roubles 26.4 billion on defence between January and April, almost half the 3.5 trillion roubles, or 2.6 of GDP, budgeted for all of 2022.pdivdivdiv classBodysc17zpet90 cdBBJodiv

　　pThe ministry had initially forecast a budget surplus of 1 of GDP, or 1.3 trillion roubles, for 2022, but now expects a deficit of at least 1.6 trillion roubles, allowing for support payouts to counter the effect of an unprecedented barrage of Western economic sanctions. p

　　pThe government will use Russias National Wealth Fund NWF, a rainyday cushion built up from oil and gas revenues, to cover the deficit, and also to support the value of stocks and bonds, which have fallen sharply since Moscow sent tens of thousands of troops and heavy armour into Ukraine on Feb. 24.p

　　pSome of the NWF is invested in financial markets, and its value fell 20 billion between early February and April, to 155 billion, according to data released on Monday..p

　　pIn April alone, Russia spent 628 billion roubles 9.7 billion on its military, up 128 on April 2021, helping to tip the monthly state budget into deficit for the first time this year.p

　　pThe finance ministry declined to comment on the increase in defence spending.p

　　pThousands of civilians have been killed in Ukraine and more than 14 million people have fled their homes in a conflict that Russia says was necessary to counter Western aggression and protect Russianspeakers from repression.p

　　pUkraine says it is fighting an imperialstyle land grab and that Moscows claims of aggressive nationalism and persecution of Russianspeakers are nonsense. 1 64.4010 roublesp

　　p

　　pp Reporting by Reuters Editing by Kevin Liffeyp

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