Russia’s Economy in 2025: A War Machine Running Low on Fuel

At what point might the Kremlin's economic woes affect its war against Ukraine?

Russian President Vladimir Putin speaks at the Grand Kremlin Palace, January 17, 2025, in Moscow, Russia. (Photo by Contributor/Getty Images)

By Hollie McKay

Hollie McKay is a writer, war crimes investigator, and the author of “Only Cry for the Living: Memos from Inside the ISIS Battlefield.” (Jocko Publishing/Di Angelo Publications 2021). She was an investigative and international affairs/war correspondent for Fox News Digital for over fourteen years, where she focused on war, terrorism, and crimes against humanity.

DEEP DIVE — Nearly three years into its costly war against Ukraine, Russia’s economy is faltering under the strain of sanctions, inflation, and high borrowing costs. While Western hopes that the sanctions would bring economic collapse proved premature, the cumulative toll is now evident.

After an initial wartime boom driven by defense spending, nearly every metric now suggests trouble for the Kremlin – from a drop in economic growth to a spike in inflation to a plunge in the value of the Russian ruble. All are related, and all add up to a problem for Russia as the Kremlin continues to pour money into the war effort.

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