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

Nearly three years into its costly war against Ukraine, Russia’s economy is struggling under the weight of sanctions, rising inflation, and steep borrowing costs. While Western expectations of an economic collapse were premature, the long-term impact is becoming increasingly clear.

After an early wartime surge fueled by defense spending, nearly every economic indicator now points to trouble for the Kremlin—slowing growth, soaring inflation, and a sharp decline in the ruble's value. These interconnected challenges are mounting as Russia continues to funnel resources into its war effort.