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Significance
Hopes that sanctions and a sclerotic economy will hinder Russia’s war effort are likely to prove misplaced. Careful management of the budget and healthy oil revenues mean that the state finances are more resilient than many observers suggest.
Impacts
Elevated government spending is generating faster economic growth.
By focusing more resources on the military, other more productive areas of the economy will suffer.
Spending on the war in Ukraine is accompanied by increased procurement as Moscow seeks to reconstitute and expand its battered military.
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2023
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