Putin’s War Is Crippling Ukraine’s Economy—and Russia’s, Too
As the conflict enters its second year, it’s clear that the cost to both sides will be intolerably high.
A destroyed Russian tank near the village of Dmytrivka, outside of Kyiv.
Photographer: Serhii Korovayny
When a large country attacks a smaller, poorer one—with about a quarter its population and one-ninth its economic output—it’s not unreasonable to expect some manageable financial strain for the aggressor and catastrophic devastation for the victim. A year into Russia’s war in Ukraine, the economic fallout could indeed be described in those terms: Much of Ukraine has been reduced to rubble, with millions of citizens huddled in the cold and dark, while life in Russia, if you’re not a soldier on the front lines, remains fairly comfortable.
But as the war enters its second year, it’s becoming clear that the cost to both sides will turn out to be intolerably high. There’s no outcome that looks good for anybody, and the longer the conflict lasts, the higher the economic toll will climb.