Russia’s War Economy and Its Long‑Term Risks

The war in Ukraine has become the main focus for Russia’s leader.
He uses it to justify spending on weapons, pay soldiers and push his political agenda.

Human Cost

• Estimated casualties: 1–2 million Russians killed or injured.

Economic Consequences

• Pre‑war stagnation: Slow growth, heavy reliance on oil and gas, little room for diversification.
• Demographic decline: Birth rates fell after the Soviet Union collapsed, leading to a shrinking population.
• Political tightening: Reduced freedoms as the government tightens control.

War‑Driven Resource Allocation

• Priority: Tanks, shells, and bombs over projects that would create lasting value.
• Impact: Fewer resources for new businesses or infrastructure improvements.

Societal Militarization

• Many citizens now work in defense or support roles.
• The culture shifts to fit a militarized image, limiting opportunities for ordinary people and reducing economic adaptability.

Expert Warnings

• Lack of diversification
• Shrinking workforce
• Reduced freedoms

These factors could leave Russia weak in the long run.

Call to Action

The country’s leaders need to balance military needs with building a resilient economy that benefits all.