01 Sep 2026
The war against Ukraine is undermining Russia’s own economy
Russia’s economic aggression against Ukraine is also having serious consequences for Russia itself. This was stated by an expert from the Bank of Finland, whose assessment was cited by Yle.
According to him, Russian industry is operating in a mode of “war economy”, with resources directed primarily toward arms production and sustaining the front. At the same time, other sectors – from civilian engineering to services – are rapidly deteriorating.
“Russia’s economy is functioning under conditions of mobilization. This means that there are no investments, workforce, or technologies left for peaceful projects,” the expert noted.
Analysts at the Bank of Finland believe that Russia’s current economic model is not sustainable: it provides short-term military output but deprives the country of prospects for long-term development.
According to experts, a return to a peacetime economy in the foreseeable future is impossible. The reasons include both the ongoing war and sanctions pressure, which restrict access to modern technologies and financial markets.
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