War Overheads Forge a Dual Economy Stalling Russia’s Civilian Sectors
Russia’s invasion of Ukraine has split its economy into a booming military‑industrial sector and a stagnant civilian market, as soaring costs, higher taxes, and rising internal borrowing squeeze non‑military businesses, trigger liquidity problems, and push up deficits. Even with windfall energy revenues, macro malaise persists, while Kyiv’s strikes on energy infrastructure deepen the strain on a war‑driven economy.