The Cracks in Russia’s War Economy

Alexandra Prokopenko

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To sustain its war against Ukraine, Russia militarized its economy. Although—contrary to popular belief abroad—the Russian economy is not on a full wartime footing, the Kremlin has both splurged on weapons factories and begun trading more with China to evade Western sanctions. Over the past three years, the Russian economy has outperformed most forecasts thanks to extravagant government spending, high prices for commodities that Russia exports, and skilled economic management.

There are now two views of Russia’s economy. One, touted by Russian President Vladimir Putin, is that the Russian economy has proved