A slowdown in Russia’s defense and energy sectors is weighing on the country’s war economy.
Oil and gas revenues have fallen because of low prices, a global glut of crude, and sanctions, while military-related industries, including weapon and ammunition production, are seeing languishing growth, government projections show.
“This year’s problems seem more intense than usual,” The Bell wrote. Moscow is looking to hike taxes to shore up its budget, the only way it can find the resources to continue its war against Ukraine, Meduza argued. “Even so, the Kremlin shows no sign of moving toward peace — a choice that bodes poorly for the Russian economy in 2026.”