The Sunday Times dispelled the dangerous myth of Russia's collapse due to the war: Putin's tactics are working.

Journalist Mark Galeotti has finally proven how the war in Ukraine is impacting the Russian economy – and this is not good news for Moscow. According to him, increased military expenditures, support for families of the dead, and new opportunities for industry are beginning to have a stronger impact on the Russian economy than ever before.

Last week, Russian airline passengers personally felt the effects of the war when Ukrainian drone attacks led to the cancellation of numerous flights. With a labor shortage in agriculture and high food prices, the situation in the country is worsening.

And while some Russians may benefit from this war, such support for Putin requires great sacrifices from them.

The effects of the war in Ukraine for individual Russian regions

It should also be noted that Russian regions from which new conscripts are sent and where significant losses are felt can experience substantial financial benefits from this conflict.

Throughout the two years of conflict, bank deposits in certain regions have increased tenfold, and the labor market is actively developing. Even in those regions where payments are not as frequent, Russians can expect an improvement in economic conditions.

However, even with such positive dynamics, identifying Russia as a warring country could negatively impact overall economic growth.

For Russia, it is difficult to avoid the consequences of the war in Ukraine: while some regions benefit, overall this conflict may pose a serious challenge to the country's economy.