Mounting Pressure: How Russia’s Economy Is Buckling Under War Strain

Russia’s economic resilience, once a key talking point for the Kremlin, is showing significant cracks as the war continues to strain the country’s resources. While officials boast about GDP growth and adaptation to Western sanctions, underlying issues paint a much grimmer picture. Inflation is rising, interest rates are at record highs, and labor shortages are becoming a serious problem. These economic pressures are directly affecting Russia’s defense industrial base, which is struggling to meet the demands of a prolonged war. As reserves dwindle and production lags behind battlefield losses, questions are mounting about Russia’s ability to sustain its war effort beyond 2025. This report explores the growing economic strain, the measures being taken to address it, and the uncertain future facing the Russian war machine.