Russia's sanctions-hit, militarized economy is expected to slow next year and banks' profits will fall, while the benchmark interest rate may climb to 23% by the end of this year, Andrei Kostin, CEO of Russia's second-largest lender,

Last month, the central bank also lowered its forecast for Russia’s economic growth next year to 0.5 to 1.5 percent, compared with 3.5 to 4 percent this year. The slowdown comes even as the government continues to pump record amounts of money into the economy to finance the war.

The rouble has dramatically lost value, and Russians are worried about food prices and are now openly criticising Putin's officials. "We would like to see Russia descending into the abyss of an economic crisis,

Despite a raging war, both Russia and Ukraine have seen economic growth in 2024 — about 3.6% for Moscow and 3% for Kyiv — British officials said, though Russia’s increase was likely driven by government spending heavily tilted toward the defense sector.

Russian President Vladimir Putin has approved a record-breaking defense budget, setting aside a staggering third of the government’s total spending as the war in Ukraine drains resources from both sides nearly three years on.