Russian War Economy
conceptDefense & Military-Industrial
Russia's economy has been retooled for war and it's working, but the math underneath is quietly running out of room.
Who they are
The Russian war economy since its 2022 shift to wartime footing.
What they do
The engine reads it as resilient in output but hitting hard mathematical limits.
How it works
Defense now eats 8%+ of GDP and 40% of the federal budget, with military output tripled, armored-vehicle production doubled and ammunition up fivefold - but this comes with 21% interest rates, 1.6 million unfilled jobs, 73% of firms short on staff, foreign reserves at a 2008-era low of $31 billion, and industry running at 81% capacity.
Why it matters
It shows a war machine that can keep going for now but is being ground down by labor shortages and financial strain that no amount of spending fully solves.
The engine's record — word for word
Post-2022 transformation. 8%+ GDP defense spending. 40% federal budget. Triple military-industrial output. Armored vehicle production doubled, ammunition 5x. BUT: 21% interest rates, 1.6M unfilled jobs, 73% enterprises report personnel deficits, $31B reserves (2008 low), 81% industrial capacity. Resilient but mathematically constrained by exhaustion.
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enables
Russiapost-2022 transformation
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