A Russian defence executive has warned that the country’s economy may be heading toward a crisis reminiscent of the 1990s collapse that followed the Soviet Union’s breakup. That era saw hyperinflation, a 50% economic contraction, and widespread hardship—conditions President Vladimir Putin has long invoked to rally support.
Today, the strain of the war in Ukraine and Western sanctions is again pressuring Russia’s economy. Alexey Chadayev, a former adviser to parliament and now a defence industry executive, said the situation in most sectors is “bleak,” with rising devaluation, soaring costs, scarce affordable credit, and even a return to barter transactions.
Even defence firms are reportedly struggling. Uralvagonzavod, Russia’s largest railcar producer and main tank supplier, is set to cut 10% of its workforce by February 2026 and freeze new hiring, according to local reports.
