The Business Insider editorial team is convinced that even stopping the war against Ukraine will not save the Russian economy from the large-scale problems that have multiplied over the past three years.
Points of attention
- The demographic crisis and brain drain are putting serious pressure on the Russian economy.
- Changes in the economic and political spheres guarantee the aggressor country a difficult and turbulent future.
Russia's economy will not be able to withstand Western pressure
It is impossible to ignore the fact that dictator Putin has driven his country into dependence on military spending to support the economy.
Moreover, Russia is burdened with a number of economic problems that cannot be solved in a short period of time.
Even if Kyiv and Moscow manage to agree to end the war, Moscow's military spending will remain high.
Russia’s federal budget for 2025 includes a record spending of 13.5 trillion rubles on the military. This compares with 10.8 trillion rubles last year. Economists say the stimulus is largely responsible for Russia’s recent economic growth, with GDP growing by about 4% last year. But other indicators of Russia’s long-term prospects look weaker.
The spectrum of problems currently facing the aggressor country is truly broad.
We are talking about a demographic crisis, brain drain, and high demand from the defense industry and the army, which is increasing pressure on the market.
All of this, as well as the challenges that will arise later, guarantee Russia a truly bad future even after the end of hostilities.
