Story perspectives

Russia's Economy Faces Crisis Amid War, Inequality Grows

3/3/2026

Summary

Story summary

Russia's economy declines due to the war with Ukraine, with nearly 30% of companies unprofitable in 2025 and losses around 7.5 trillion rubles ($100 billion).
Regional governments face strain as Moscow extracts tax revenue and imposes military recruitment quotas.
Officials say household incomes rose 7.4%, but independent economists say inflation erodes growth.
Oil and gas revenues, sanctioned, have fallen 50%, while taxes and underfunded services widen inequality and risk unrest.

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Story summary

Russia's economy declines due to the war with Ukraine, with nearly 30% of companies unprofitable in 2025 and losses around 7.5 trillion rubles ($100 billion).
Regional governments face strain as Moscow extracts tax revenue and imposes military recruitment quotas.
Officials say household incomes rose 7.4%, but independent economists say inflation erodes growth.
Oil and gas revenues, sanctioned, have fallen 50%, while taxes and underfunded services widen inequality and risk unrest.