The Price of Aggression: The Russian Economy Descends into Crisis Due to the War.

Western analysts believe that the Russian economy is on the brink of disaster despite official reports of low inflation and economic growth.

In the 2025 budget, Russia allocated a record 13.2 trillion rubles to "National Defense," which constitutes about 6% of GDP. However, such a huge amount of money spent on defense leads to an imbalance in the country's economy.

The main source of Russia's income was the sale of energy resources. However, due to the war with Ukraine and sanctions, Moscow has almost lost this opportunity. Additionally, the decline in global oil prices could further hit Russia's revenues.

The Kremlin plans to earn from its population by raising gas prices and increasing taxes. However, printing money leads to rising prices and stagflation. Economists predict that with the rise in military spending and money printing, the purchasing power of Russians will decrease.

Additionally, Russia's reserves have decreased, leading to a reduction in its ability to rely on them.