Russia's economy feels strain as war pressures grow and oil windfall wanes
Russia's growth is set to slow to its weakest level since 2022, with a widening budget deficit and deeper Ukrainian strikes, even as higher oil prices from the US-Israel conflict temporarily boost revenues.
Four years after the invasion of Ukraine, Moscow's economy is beginning to show signs of fatigue. Forecasts point to the slowest expansion since 2022, while the state budget gap is expanding. Ukrainian attacks are penetrating further into Russian economic infrastructure. Although higher energy prices linked to the US-Israel war on Iran have provided a short-term revenue boost, the United States Senate is moving to impose tariffs of up to 100 percent on Russian energy purchases.
Why it matters
The story shows how war and sanctions are jointly squeezing Russia's finances, affecting global energy markets and geopolitical stability.
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