Economic Strain in Russia as Wartime Economy Faces Challenges
Russia's economy is showing signs of strain as the effects of Western sanctions and the exodus of Western companies take hold. The Goodzone mall in Moscow, once bustling, now stands largely empty, reflecting the broader economic malaise. The Russian economy, which initially pivoted to military spending and increased oil exports, is now experiencing a contraction, with GDP falling by 1.8% in the first two months of 2026. Russian President Vladimir Putin has acknowledged the slowdown, and there are warnings of potential social unrest if the economic situation is not addressed. 
