Russia's Wartime Economy Faces Contraction Amid High Oil Prices and Sanctions
Russia's economy, under the leadership of President Vladimir Putin, is experiencing significant challenges despite high oil prices. The economy contracted in the first two months of the year, with manufacturing, industrial production, and construction all in negative territory. This downturn comes after Russia managed to stabilize its economy post-2022 recession through stringent controls and increased defense spending. The Kremlin has imposed strict limits on capital movement, pressured exporters to convert foreign currency into rubles, and restricted foreign investors. Additionally, taxes have been raised to finance full mobilization, pushing many small and medium enterprises to the brink of closure. Inflation is currently at 5.9%, and the strong ruble has made Russian exports more expensive globally. 
