The cost of war – The Property Chronicle
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The cost of war

The Economist

How Russia’s economy will struggle to pay the price of invading Ukraine.

The invasion of Ukraine has placed Russia on the verge of bankruptcy. Interest rates have doubled, the stock market has closed and the rouble has fallen to its lowest level ever. 

The military costs of war have been exacerbated by an unprecedented level of international sanctions, sustained by a large coalition of countries. Russian citizens, now unable to spend at IKEA, McDonald’s or Starbucks, are not allowed to convert any of the money they do have into foreign currency.

Generous estimates suggest the Russian economy could shrink by 7% next year, instead of the 2% growth that was forecast before the invasion. Others say the drop could be as much as 15%.






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