--- title: "Russia's wartime economy shows strain from military spending" publication: "MediaBias News" url: "https://mediabias.news/business/russias-wartime-economy-shows-strain-from-military-spending" api: "https://mediabias.news/api/v1/stories/russias-wartime-economy-shows-strain-from-military-spending" markdown: "https://mediabias.news/business/russias-wartime-economy-shows-strain-from-military-spending.md" audio: "https://mediabias.news/api/audio/russias-wartime-economy-shows-strain-from-military-spending" category: "Business & Economy" area: "Russia" published: "2026-09-18T06:05:18.000Z" source_reported: "2026-09-18T05:15:28.000Z" updated: "2026-09-18T06:05:18.000Z" trust_score: 66 critic_score: 95 hype_score: 15 assessment_type: "coverage-and-source-reporting-analysis" fact_check_status: "not-performed" coverage_measured: "2026-09-18T07:12:50.181Z" --- # Russia's wartime economy shows strain from military spending *Consumers and businesses report gloomier sentiment as growth slows, though economists do not foresee immediate collapse.* **Scores for the source reporting** (0-100, assessing the original journalism this article was written from, not this write-up): - Trust 66 of 100, higher is better. Trust 66: includes named individuals and Levada Center data, but only one independent source and no syndicated variety. - Craft 95 of 100, higher is better. Critic 95: explains relevance, quotes multiple voices, provides specific figures, and outlines unknown future risks. - Hype 15 of 100, lower is better. Hype 15: headline matches article content; language is measured without sensational exaggeration. Scored by MediaBias News; method at https://mediabias.news/methodology. **The short version** - Russia's wartime economy is under strain from increased military spending, which has led to a widening budget deficit. - Consumer sentiment has fallen, with the Levada Center index dropping to 94 in summer, indicating more negative than positive sentiment. - Economists state that despite these pressures, the current situation does not signal an imminent financial crisis or economic collapse. - The government forecasts 0.6% economic growth for 2026, a slowdown from previous years. Russia's economy is facing increasing difficulties driven by substantial military expenditures, which are expanding the budget deficit. Both consumers and businesses are reporting more pessimistic outlooks, and economic growth has decelerated. Despite these pressures, economists suggest that an immediate financial crisis or economic collapse is not imminent. Crucial oil export revenues are reportedly holding up, enabling the government to fund its ongoing military operations. Low unemployment and government support in less affluent regions are also contributing to public stability. However, economists warn of long-term issues that could undermine the economy's foundations. Indicators of consumer sentiment have declined since a peak in 2024-25, a period when military spending had boosted growth and wages. More recently, consumers have contended with higher gasoline prices and shortages resulting from Ukrainian drone attacks on refineries. Many small businesses have also experienced losses due to strikes against online retailers. Economic growth has slowed from a peak of over 4% annual expansion in 2023-24, with the government forecasting 0.6% for 2026. The economy contracted in the first quarter before a partial rebound in the second. ## Consumer sentiment decline The consumer sentiment index compiled by the Levada Center fell to 94 over the summer, a decrease from 116 in the spring and summer of 2025. Readings below 100 signify that consumer sentiment is more negative than positive. Economists like Chris Weafer of Macro-Advisory Ltd. describe the economy as being in a state of "tolerable stability," with public mood characterized as "grumbling" rather than protesting, noting that disruptions to shopping habits are unlikely to alter public support for the Kremlin. President Vladimir Putin's approval rating has seen a recent decline but remains higher than pre-war levels. ## Budget deficit and long-term concerns A significant indicator of economic stress is Russia's budget deficit and the government's efforts to secure funding. The government has increased value-added tax, introduced other fees, and tightened taxation on small businesses, yet the deficit continues to grow. By the end of July, the budget deficit reached 2.8% of annual economic output, nearly double the initial target. Russia's reserve fund has diminished to 1.6% of GDP, necessitating domestic bank borrowing at high interest rates, with Russian bond yields reportedly reaching 17%. Experts like Janis Kluge of the German Institute for International and Security Affairs suggest that budget stress raises questions about the sustainability of the war effort. Russia's central bank has maintained high interest rates to combat inflation stemming from war spending, which disadvantages civilian companies compared to defense firms seeking credit. Some economists, such as Torbjörn Becker at the Stockholm School of Economics, warn that Western sanctions limit new investment, and the combination of high spending, low growth, and rising debt indicates a dangerous erosion of the economy's structural foundations, though the timing of any potential crisis remains uncertain. ## What the coverage left out None of the left-rated or centre-rated reports mention the specific figure of $1.2bn in relation to any aspect of Russia's economy or military spending. ## Who covered it Shares of the 7 covering outlets with a published leaning rating: - Left: 71% (5) - Centre: 29% (2) - Right: 0% (0) 1 of 8 covering outlets carried no usable leaning rating and were excluded from those percentages. Coverage measured 2026-09-18T07:12:50.181Z. **Coverage watch:** developing. Checked 5 times; 0 checks found a material change. Most recently checked 2026-09-18T07:15:15.306Z. ## How the sides framed it ### Left - The left-rated reports led on the growing frictions in Russia's wartime economy, highlighting the ballooning budget deficit due to massive military spending. They noted that consumers and businesses are gloomier and growth has slowed. These reports carried the Levada Center's consumer sentiment index falling to 94 over the summer, down from 116 in spring and summer of 2025, and mentioned that readings under 100 indicate more negative than positive sentiment. They also included economists' warnings about longer-term problems gnawing at the foundations and the potential for a future crisis, with one report quoting Torbjörn Becker stating the current trajectory is "unsustainable." ### Centre - The centre-rated reports focused on the growing strains in Russia's wartime economy, particularly the budget deficit caused by military spending and the resulting pessimism among consumers and businesses. They reported the government's forecast of 0.6% economic growth for 2026 and the contraction in the first quarter. These reports also highlighted the Levada Center's consumer sentiment index falling to 94 over the summer. They included economists' views that an imminent financial crisis or economic collapse is not expected, citing oil export revenues and government support. The reports also detailed the budget deficit reaching 2.8% of annual economic output and the dwindling reserve fund, alongside warnings about long-term structural erosion and high borrowing costs. ### Right No separate framing summary. **Provisional coverage gap:** right. The watch is not closed, so this is not yet a settled blindspot finding. ## Factuality profile of the covering outlets These are published factuality ratings of the outlets, not a verdict on whether this story or its claims are true. - mixed: 1 - high: 3 - unknown: 1 - veryHigh: 3 ## Verification scope This page compares coverage and scores the source reporting. It is not a ClaimReview verdict on whether the underlying event or claim is true. ## Original reporting this was written from - [BizToc](https://biztoc.com/x/472f5c1e3d3e16f7) — Russia's wartime economy faces long-term erosion from debt and military spending - [My Mother Lode](https://mymotherlode.com/news/east-europe/11149186/russias-wartime-economy-faces-long-term-erosion-from-debt-and-military-spending.html) — Russia’s wartime economy faces long-term erosion from debt and military spending - [Winnipeg Free Press](https://winnipegfreepress.com/business/2026/09/17/russias-wartime-economy-faces-long-term-erosion-from-debt-and-military-spending) — Russia's wartime economy faces long-term erosion from debt and military spending - [The Seattle Times](https://seattletimes.com/business/russias-wartime-economy-faces-long-term-erosion-from-debt-and-military-spending) — Russia’s wartime economy faces long-term erosion from debt and military spending - [The Independent](https://independent.co.uk/news/russia-kremlin-consumers-germany-frankfurt-b3052247.html) — Russia's wartime economy faces long-term erosion from debt and military spending - [The Independent (US)](https://the-independent.com/news/russia-kremlin-consumers-germany-frankfurt-b3052247.html) — Russia's wartime economy faces long-term erosion from debt and military spending - [Goshen News](https://goshennews.com/news/national_news/russias-wartime-economy-faces-long-term-erosion-from-debt-and-military-spending/article_6ca64e55-53f8-58e5-95f4-e1e4885bae70.html) — Russia's wartime economy faces long-term erosion from debt and military spending - [abc News](https://abcnews.com/Business/wireStory/russias-wartime-economy-faces-long-term-erosion-debt-136549236) — Russia's wartime economy faces long-term erosion from debt and military spending ## Questions **What is the current state of Russia's economy?** Russia's wartime economy is experiencing strain due to high military spending, leading to a growing budget deficit, increased pessimism among consumers and businesses, and slower economic growth. While economists do not foresee an immediate crisis, long-term structural erosion is a concern. **How has consumer sentiment changed in Russia?** Consumer sentiment has declined, with the Levada Center's index falling to 94 over the summer. This figure is down from 116 in spring and summer of 2025, and readings below 100 indicate that more consumers hold negative views than positive ones. **What is the forecast for Russia's economic growth?** The Russian government forecasts 0.6% economic growth for the year 2026. This represents a significant slowdown compared to previous periods, which saw growth rates exceeding 4% annually. --- MediaBias News — https://mediabias.news. Reproduced from https://mediabias.news/business/russias-wartime-economy-shows-strain-from-military-spending. Please cite as: MediaBias News, "Russia's wartime economy shows strain from military spending", https://mediabias.news/business/russias-wartime-economy-shows-strain-from-military-spending