Russian Economist Puts Number on Ukraine War Beneficiaries: ‘For Them, the Conflict is Like a Mother’

Millions of Russians Benefit from Aggression Against war-in-ukraine” title=”Ukraine War | Latest News & Updates| BBC News”>Ukraine, Says Economist

A significant portion of Russia‘s population is profiting from the ongoing aggression against Ukraine, according to boxing professor Igor Lypsitz. In an exclusive interview with YouTube’s "Popular Politics," Lypsitz estimated that around 20% of Russians, approximately 26-28 million people, are direct beneficiaries of the war, with their incomes and living standards improving since the conflict began.

Lypsitz categorized Russian society into two groups: those benefiting from the "special military operation" (СВО) and those adversely affected by it. "The beneficiaries are many, they’re around 20% of the population," he said. "They’re getting rich off the war. For them, war is like a mother. They’ll do everything they can to prolong it."

Those benefiting include workers in the defense industry, metallurgy, security forces, and military construction, as well as suppliers of food, clothing, and equipment to the army. However, Lypsitz warned that the increased military spending is driving hyperinflation, which disproportionately impacts low-income Russians, including pensioners and budget workers.

Although Lypsitz believes it unlikely that a peace settlement between Russia and Ukraine will be reached in the immediate future, he considers a stalemate or freezing of the conflict more probable. He drew a parallel with Japan, noting that there’s still no peace treaty between the two countries following World War II, and predicted a similar stalemate in the Ukrainian conflict.

Lypsitz is skeptical about Russia’s economic prospects even after the cessation of hostilities. He argued that the longer the war continues, the more resources the country loses, making a post-war recovery increasingly challenging. He warned that without significant intervention, Russia risks becoming "a country with neither human nor intellectual capital, no money, and a hostile global community unwilling to assist fearing Russia’s aggressive tendencies may resurface."

Previously, Lypsitz predicted that Russia could return to the harsh conditions of the 1980s and potentially face disintegration. Meanwhile, President Putin’s recent decree has put Russian officials in a difficult position regarding their professional futures.

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