How Russia Put Its Future at Risk by Remaking Its Economy for War

New York Times - WorldEN 7 min read 100% complete by Paul SonneFebruary 24, 2026 at 06:01 AM

AI Summary

long article 7 min

Since the 2022 invasion of Ukraine, Russia has significantly reoriented its economy towards military spending, allocating nearly half of its federal budget to the war effort. This shift, under President Vladimir Putin, has impacted Russia's long-term development by diverting funds from sectors that could stimulate economic growth. The increased military spending is financed by drawing down the National Wealth Fund and running a budget deficit. Experts believe this focus on military expenditure, coupled with pre-existing issues like a lack of economic diversification and a shrinking population, jeopardizes Russia's future economic prospects. The war has also resulted in a large number of Russian casualties, further straining the nation's resources.

Key Entities & Roles

Key Player Opposition Context

China 30% Berlin 30% United States 30% Victory Day 30% Washington 30% Carnegie Russia Eurasia Center 40% Moscow ×240% Kremlin 40% Alexandra Prokopenko 50% Ukraine ×480% Vladimir V. Putin ×585% Russia ×1090%

Keywords

russia 100% war 90% ukraine 90% economy 80% military spending 70% federal budget 60% economic stagnation 60% militarization 50% national wealth fund 50% long-term development 40%