Russia’s economy boomed after the invasion of Ukraine—it’s now running out of steam

Russian President Vladimir Putin at an economic forum (Credit: Getty Images)

• After years of anticipated economic strife, Russian authorities warn the country is on the precipice of a recession as the Kremlin’s bloated military spending amid its ongoing invasion of Ukraine exacerbates underlying labor shortages and rising inflation. 

Russia’s wartime economy, once defiant in the face of Western sanctions and geopolitical isolation, is showing signs of fatigue. On Thursday, Russia’s economy minister Maxim Reshetnikov warned the country was “on the brink” of a recession at the St. Petersburg Economic Forum.