• D.C.
  • BXL
  • Lagos
  • Riyadh
  • Beijing
  • SG
  • D.C.
  • BXL
  • Lagos
Semafor Logo
  • Riyadh
  • Beijing
  • SG


Russia’s domestic economy is increasingly reliant on war in Ukraine

Mar 30, 2025, 6:16pm EDT
Europe
A man carries metal pipes in Russia
Maxim Shemetov/Reuters
PostEmailWhatsapp
Title icon

The News

Russia’s industrial heartland is seeing an economic renaissance as a result of the war in Ukraine.

Shops, restaurants, and gym chains are opening up throughout the country’s rust belt alongside a hike in military production and new wealth stemming from heavy army recruitment: Russia gives large bonuses to conscripts, and their families get payouts if they die.

“Almost all women get manicures now,” one resident of a small Russian city told the Financial Times. “We even got a private dog grooming service in our town, now that’s a real indicator.”

Russia’s shift to a wartime footing in the face of Western sanctions has made the country’s economy so dependent on military spending that peace could have disastrous ramifications, The Wall Street Journal wrote.

A chart showing Russian military spending as a percentage of government spending
AD
AD