Russia’s Financial system in 2025: A Conflict Machine Working Low on Gas

DEEP DIVE — Almost three years into its pricey warfare in opposition to Ukraine, Russia’s financial system is faltering underneath the pressure of sanctions, inflation, and excessive borrowing prices. Whereas Western hopes that the sanctions would carry financial collapse proved untimely, the cumulative toll is now evident.

After an preliminary wartime increase pushed by protection spending, almost each metric now suggests bother for the Kremlin – from a drop in financial progress to a spike in inflation to a plunge within the worth of the Russian ruble. All are associated, and all add as much as an issue for Russia because the Kremlin continues to pour cash into the warfare effort.

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