#russia-economy News & Analysis

Russia warns war costs are ravaging its finances while Ukrainian ‘drone overmatch’ sends Putin’s forces reeling in new phase of combat

Russia's economy is deteriorating under the strain of sustained military operations, with GDP growth forecasts slashed to 0.4% for the year from a previous 1.3% projection. The country faces mounting war expenditures while Ukrainian forces gain tactical advantages through drone warfare, signaling a shift in conflict dynamics that could have broader macroeconomic implications.