“Guns instead of butter”: Russia's once-booming military economy is cracking

[Starmix]

According to the report, the turning point in Russia's war economy became visible recently, when the Central Bank of Russia cut its key interest rate by 2 percentage points after cutting it by 1 percentage point last month. Inflation worries are turning into growth worries. It is now clear that the Russian economy, which has been successfully converted to a war footing, is beginning to show cracks, Bloomberg experts believe.Economy Minister Maxim Reshetnikov even warned last month that the country is on the verge of sliding into recession.If the military-industrial complex Moscow created to successfully conduct the war were sufficient to support the Russian economy, the steel industry would probably be doing well. But this sector is also in decline, the American information and analytical agency writes.

The report sad that one of the reasons is a slowdown in construction against the backdrop of a weakening real estate market.But now the cracks in the economy with a capitalization of 2 trillion dollars have become obvious. In November, 2025 was expected to be a year of reduced consumer spending, as Moscow was forced to choose guns over butter. And that dynamic was on display this week: Russia’s leader attended the flag-raising ceremony for Russia’s newest nuclear ballistic missile submarine, the fifth of the new Borei-A class built in the past six years. And yet, car sales fell 30% in June, as did real estate.“There remains only a narrow group of leading industries with high growth rates – all of them are related to government contracts and defense”, comments Sofya Donetsk, chief economist at T-Investments.According to her, it is difficult to find other industries that would be in the black.

What a waste of resources because of the ruthless war and ruthless Putin who does not lower his ego, He should not pretend that he is great because, even his warriors hate him the most.

Watch the report via the link.

 

[magnus2022]

I totally disagree with that report because while the war is going,Russia is selling metric tonnes of crude on daily basis to European countries especially Germany, Turkey, France and other EU countries. Most importantly, the whole transactions must be done in Russia currency.

 

[Starmix]

The reporter is based from Russia which you can't refute. They know well better than the outsiders. Russia is sinking.