Massive military expenditure has split Russia’s economy into an overheated defense industry and a stagnating civilian sector, forcing the Kremlin to hike taxes.
According to former Kremlin advisor Vladislav Inozemtsev, Russia's economic crisis is less a consequence of war and sanctions than of a shift in policy in Moscow. "Vladimir Putin has begun to shoot himself in the foot economically," Inozemtsev told Der Spiegel. The Russian economist diagnoses a "significant break in Russian economic policy." At the beginning of the war, the Russian government pursued "masterful economic policies."
Regulations a…