Russia Craters
Putin is already running out of cash and time. One Kremlin insider warned a few weeks ago on Russian radio that war costs are eating the rest of the Russian economy alive.
Russia's war in Ukraine has inflicted catastrophic losses, with over 400,000 Russian military personnel killed or severely wounded as of November 2026. The staggering cost of the conflict has strained Russia's economy, with military expenses consuming both its armed forces and civilian sectors. To finance the war, Putin has reneged on promises to provide military families with death benefits and postponed salary payments to defense employees not engaged in the conflict.
Struggling sectors, including IT, telecoms, and manufacturing, have seen workers go unpaid, leading to strikes and resignations. Meanwhile, Ukraine's relentless bombing campaign has caused significant damage to Russia's energy infrastructure, resulting in a $23 billion loss in the oil sector and a 30% reduction in oil exports. The banking sector is also under pressure, with losses from deposit withdrawals reaching $15 billion in June, July, and August.
With no foreign financial aid, Russia is borrowing from domestic state banks, which are now facing a critical loan restructuring crisis. As the economic crisis deepens, Russians are losing confidence in their government and facing widespread layoffs and unpaid wages.
Written by urgent.news from Kyiv Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
