Part 5/10:
Central to understanding these economic struggles is the financial toll of Russia's ongoing military engagements, particularly the war in Ukraine. The conflict has drained significant resources and accelerated inflation. The Russian government has committed to increasing military spending, which has further diverted resources from essential civilian needs.
Moreover, the impact of international sanctions has exacerbated Russia's economic woes. Targeting key sectors, including finance and energy, these sanctions have intensified inflation by making it more difficult and costly for Russia to trade in global markets. The resulting decline in investment and output signals a grim outlook for the future.