How long can the Russian economy continue to fund the frontline?
Update: 2025-10-28
Description
Despite mounting sanctions and a looming recession, Russia's economy remains resilient, with military spending propping up certain sectors. Inflation is high, but unemployment is low. The central bank has lowered interest rates to support growth. However, business optimism has dropped, and economic growth has slowed. Sanctions have targeted Russia's oil companies and liquefied natural gas exports, but the Russian government has experience evading restrictions. Russia's dependence on oil and gas for budget income has decreased, and it has alternative sources of funding. Experts predict that energy sanctions alone are unlikely to significantly limit Russia's military spending in the short term.
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