Russia’s Economy in 2025: A War Machine Running Low on Fuel

DEEP DIVE — Nearly three years into its costly war against Ukraine, Russia’s economy is faltering under the strain of sanctions, inflation, and high borrowing costs. While Western hopes that the sanctions would bring economic collapse proved premature, the cumulative toll is now evident.

After an initial wartime boom driven by defense spending, nearly every metric now suggests trouble for the Kremlin – from a drop in economic growth to a spike in inflation to a plunge in the value of the Russian ruble. All are related, and all add up to a problem for Russia as the Kremlin continues to pour money into the war effort.