A Report cited by The Economist, Argues that Russia is Drifting into a “Death Zone”, where Tesources are Depleted Faster than they can be Restored.
The Threat is Not an Abrupt Collapse, but a Slow Erosion of Economic Foundations. While the System continues to Function on the Surface, Structural Weaknesses are Deepening.
The Report suggests that even a Ceasefire would Not Automatically Reverse the Ddamage, as the Current Model is Heavily Shaped by Militarization and Rising Debt.
Russia’s Budget Deficit has Reached 5.6 Trillion Rubles, its Highest Level since the Covid-19 Pandemic.
Interest Payments on Public Debt, now Exceed Total Government Spending on Education and Healthcare.
Energy Revenues, Long a Pillar of State Finances, are also under Strain. Russian Crude is Trading at a Discount of 25% to 30% Compared with Brent, Cutting Into Export Income.
In 1/2026, Revenues from the Oil and Gas Sector Fell by nearly Half, adding Further Pressure to Public Finances.
Xperts cited in the Report, Argue that Stabilising the Economy would Require a Combination of Favourable Developments, including Sanctions Relief and Significant Restructuring of Domestic Markets.
Such a Scenario is Viewed as Highly Unlikely. Prolonging the Conflict, Analysts Warn, Raises the Risk of Financial Instability and Institutional Strain.
While Russia Retains the Capacity to Sustain its War Effort for Now, the Broader Economic Model shows Signs of Fatigue.
The Central Question, the Report Concludes, is Not Growth but How Long the System can Endure.
NYC Wins When Everyone Can Vote! Michael H. Drucker
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