The War Split the Russian Economy: Military Production on the Rise, Civil Sectors Declining.

Recent data indicates that the conflict with Ukraine has led to an increasing economic divide in Russia. Enterprises specializing in defense and government contracts are receiving certain benefits, but other sectors of the economy are facing challenges.

Main economist at T-Investments Sofia Donets noted that only specific industries related to government contracts and defense can report growth. Other civil sectors are experiencing declines due to overall expenditures on military purposes.

'Only a narrow group of leading industries with high growth rates remains - all of them are related to government contracts and defense,' said Sofia Donets.

Reports from the Federal State Statistics Service confirm a decrease in production in most civil sectors in the early months of this year. Enterprises are struggling due to rising key interest rates aimed at combating inflation.

As a result of the conflict with Ukraine, the Russian economy is experiencing an imbalance, leading to an increasing divide between sectors dependent on government contracts and defense, and other civil sectors. This could have serious consequences for the country's economy in the future.

Recent statistics show that the Russian economy is gradually supported by government contracts and defense, however, civil sectors are starting to feel reductions and difficulties due to overall expenditures on military purposes. This gap may have serious impacts on the Russian economy in the near future.