Russia spends 47 billion rubles a day on the war: the economy on the brink of stagnation.

According to FREEДOM:

Continuation of aggression and financial consequences

Expenditures to support Russia's large-scale aggression against Ukraine reached 47 billion rubles a day. Total war expenses set a new record — 8.5 trillion rubles in the first half of the year. This information was released by the German Institute for International Security Problems.

The military-industrial complex of Russia, which once was the backbone of the economy, no longer performs its functions. In July 2025, economic growth significantly slowed down, with rates below half a percent on a yearly basis.

'Compared to June, the economy slowed down 2.5 times, and compared to December of last year — 11 times. The industry found itself on the brink of stagnation. And sectors that grew rapidly last year have plunged into a deep recession. Clothing production fell by 7%, furniture — by 12%, electrical equipment — by 6.5%,' writes The Moscow Times.

Crises in key sectors of the economy

Economists believe that to maintain the military industry at the current level, the government will have to raise taxes and cut spending on civilian needs. Due to senseless expenditures, key sectors of the Russian economy are suffering, particularly the coal industry. In the first half of 2025, enterprises suffered losses of 185 billion rubles, which is nearly a billion rubles a day. The main reasons for this are limited access to Western markets and a drop in sales in Asia.

'Interestingly, several factors converge in the fall. Firstly, a wild budget deficit, what is called budgetary impulse. Secondly, lending has resumed — the credit impulse. Thirdly, as Nabiullina says, the increase in prices for marker goods — it’s both services, not only utilities but also communication, for example, sustainable growth. Right now, gasoline comes into play. We see an increase in tariffs for transportation, for railway transportation. All this does not add up for the September meeting of the Central Bank as something that can be reported to comrade Putin, that we have defeated inflation and are continuing to happily lower rates,' noted Russian opposition leader and economist Vladimir Milov.

Impact of attacks on refineries

Attacks by Ukrainian armed forces on several Russian oil refineries have dealt a significant blow to the Russian economy. According to Ukrainian military sources, on August 28, Russia lost 21% of its refining capacity due to the strikes.

'The Russian Union of Industrialists and Entrepreneurs proposed to introduce mechanisms in legislation to compensate for the losses incurred by enterprises due to attacks by Ukrainian drones. Oil refineries, metallurgical and chemical enterprises, as well as electricity facilities are regularly subjected to drone strikes,' writes The Moscow Times.

Vladimir Milov emphasized that this will negatively affect inflation in Russia.

'It is evident that in recent weeks, gasoline prices are rising much faster than inflation. Even according to Rosstat, the average price since the beginning of the year has risen by almost 6%. This is 40% higher than the rates of general consumer inflation, meaning gasoline has significantly outpaced inflation,' he explained.

Analysts believe that destroying two or three more factories, the Armed Forces of Ukraine could render the main Russian refineries inoperable within a 1000 km radius.

Recall that since the beginning of August, Ukraine has already launched a series of successful strikes on Russian oil refineries.