The Center for European Policy Action (CEPA) warns that Russia's economic situation is unlikely to improve even after the conclusion of the Ukraine war. The research highlights how the country has become increasingly reliant on military expenditure, with a record defense budget for 2025 indicating significant dependence on wartime spending. Additionally, Russia grapples with a diminishing workforce, exacerbated by a mass exodus of citizens since the onset of the invasion, further complicating its economic recovery prospects.
Even without any ongoing fighting military spending would need to remain high," Alexander Kolyandr, a senior fellow at CEPA, said.
The labor market dislocation will remain unless Russia faces a severe contraction. A combination of the demographic trough, brain drain, and high demand from the defense industry and the economy are contributing factors.
Collection
[
|
...
]