In China this week, Russia’s President Vladimir Putin was on a victory lap: returning to the embrace of India’s Prime Minister Narendra Modi, establishing a “no limits” partnership with China’s leader Xi Jinping, and signing a long-awaited Moscow-Beijing gas pipeline deal.
Back home, however, Russia’s wartime economy is flashing warning signs.
During the first years of Moscow’s full-scale invasion of Ukraine, the economy proved far more resilient than expected, thanks to stable oil and gas prices and military spending, which fuelled high wages and consumer demand.
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