The war will bring the Russian economy to a critical point — ISW

ISW predicts devastating consequences for the Russian economy due to the war
Russian President Vladimir Putin. Photo: Reuters

Russia is continuing its full-scale war against Ukraine, which is depleting its economy. It will reach the point of burnout, which will cause huge losses to Russian society.

This was written by ISW.

Russia's resources for war

The Washington Post wrote that the Russian economy is "in danger of overheating".

Back in July, Russian Central Bank Governor Elvira Nabiullina said that Russia's labor force and production capacity were "almost exhausted".

Excessive military spending has stimulated "economic growth" in a way that has forced companies to artificially raise wages to meet labor demand in order to keep up with the salaries of the Russian military.

The ISW article says that Russian regional authorities are significantly increasing one-time bonuses for contract workers at the time of contract signing. The goal is to maintain the pace of deployment of the Russian Armed Forces.

"This emphasizes the fact that Russia does not have an infinite labor pool and must financially and socially consider with the ever-increasing costs of replenishing losses at the front," analysts say.

Earlier, the ISW explained why the number of prisoner exchanges with Russia has increased. 

The Institute also claimed that Russian troopsare pressing forward and had advanced near Pokrovsk and Vuhledar in Donetsk region.

war in Ukraine окупанти економіка salary Росія ISW