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Stagflation Is Hitting Russia’s War Economy

Photo by Astemir Almov / Unsplash

Anders Åslund, Project Syndicate | August 7, 2025

Heading into the fall, Russia’s financial reserves are running out, its energy revenues are declining, and there are increasingly severe shortages of labor and imported technology. Slowly but surely, Vladimir Putin’s war and the effects of Western sanctions are taking their toll on economic growth and price stability.

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