Russia’s war economy is facing a new set of headwinds as the conflict in Ukraine drags on.
Several Russian industrial giants in the transportation and mining sectors are furloughing or cutting staff as domestic demand and exports slip. The World Bank downgraded the country’s growth outlook this week, saying Russia is heading toward stagnation rather than a “managed slowdown.” Investors and ordinary Russians are increasingly pessimistic. Experts have warned for years that Moscow’s economy is vulnerable and over-dependent on its war with Kyiv. But for President Vladimir Putin, “these are concerns for another day,” an economics professor wrote in Project Syndicate.
The economy is yet to fully collapse, and, for now, the Kremlin cares more about making gains in Ukraine.
