"Russia's Economic Dilemma: The High Cost of War and Sanctions"

Russia's economy has been heavily impacted by sanctions following its invasion of Ukraine, with significant assets frozen and limited access to global financial services. Despite this, the economy has not collapsed and is now entirely focused on the war in Ukraine, which is actually driving economic growth. The country's GDP is expected to grow by 2.6% this year, and its budget deficit remains low. Russia's strong central bank and circumvention of sanctions have contributed to its relative resilience. However, the war is the main driver of economic growth, and Russia cannot afford to win it due to the high cost of rebuilding and maintaining security in a conquered Ukraine, nor can it afford to lose it given the potential economic and social consequences.