Analyses and reports from credible economic research institutions and media outlets

Russia's Wartime Economy Can Fund Ukraine War for Years, With Unemployment at 2.4% and Oil Revenues Supporting Efforts

Oct 27, 2024, 11:49 AM

Analysts indicate that Russia's wartime economy has passed its peak after experiencing overheating in the first half of 2024. Despite this, the Russian government is projected to sustain its military efforts in Ukraine for several more years, primarily supported by substantial oil revenues and the ineffectiveness of Western sanctions. Reports from The Washington Post highlight that the anticipated economic downturn following the sanctions imposed after Russia's full-scale invasion of Ukraine in 2022 has not materialized as expected. Instead, the economy is reportedly thriving, with military spending driving growth, even as unemployment remains low at 2.4%. Experts warn that the combination of high oil income and insufficient pressure from sanctions allows Moscow to continue financing its military operations, particularly in the Donbas region, despite signs of economic fatigue.