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Economics

Russia’s Economy: Inextricably Linked to Military Expansion

In a display of military might, a T-90MC tank was showcased by Rosoboronexport, Russia’s state arms exporter, during a defense exhibition in Abu Dhabi, United Arab Emirates. This image was released by Russian state media, captured by photographer Kirill Zykov/Sputnik/AP.

By Bloomberg News, September 28, 2025, at 8:00 AM UTC

As the conflict in Ukraine continues, the implications for Russia’s economy are profound. Even if hostilities cease, the nation’s economic structure appears permanently altered by years of heavy military spending.

This relentless push towards militarization has transformed numerous factories, integrating defense production into the core of the economy and absorbing hundreds of thousands of workers. Such a significant shift has staved off economic decline, creating a complex situation where any withdrawal from military commitments could prove risky.

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