Russia Faces Economic Strain as War Costs Surge

Vladimir Putin's economic policies are under pressure due to soaring defense spending and Western sanctions, raising concerns about sustainability.

Russia's defense spending for 2025 is projected to be $145 billion, over 6.3% of GDP, the highest since the Cold War.
Western sanctions have limited Russia's ability to borrow internationally, forcing reliance on high-interest domestic loans.
The Russian economy is experiencing inflation and labor shortages, worsened by high military salaries and troop losses.
The Central Bank of Russia has raised interest rates to 21% to combat inflation, impacting private sector investments.
Russia's National Wealth Fund is being depleted, posing a risk to long-term financial stability amid ongoing war expenses.