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War Overhead Creates ‘Dual Economy’ and Stagnates Russia’s Civilian Sectors

Summary by Kyiv Post
Massive military expenditure has split Russia’s economy into an overheated defense industry and a stagnating civilian sector, forcing the Kremlin to hike taxes.

2 Articles

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…

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berliner-sonntagsblatt.de broke the news on Friday, May 29, 2026.
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