Despite the war in Ukraine and Western sanctions, the Russian economy returned to growth in 2023. Russian economic activity was driven by favorable energy prices, flexible credit conditions and above all domestic demand.
More than half a million Russians have already joined the defense industry since 2022 according to President Vladimir Putin. The economic recovery was also accompanied by a return of inflation, to 7.4% at the end of 2023, further reducing the purchasing power of Russians, also undermined by the weakening of the ruble.