ISW: New signs of future problems in the Russian economy.

According to the Institute for the Study of War, the Kremlin recently adopted several measures aimed at reducing public spending on treating wounded Russian servicemen, fighting inflation, and solving long-term demographic problems such as a low birth rate and labor shortage.

“This policy demonstrates that the Russian economy is not as resilient to Western sanctions, monetary restrictions, and military spending as the Russian government tries to make it out to be. This policy also demonstrates that the Kremlin will not be able to sustain a protracted war for years while protecting Russian society from economic challenges. Consistent Western and international support for Ukraine’s resistance on the battlefield will further exacerbate Russia’s economic problems,” ISW analysts believe.

Putin has also reduced compensation promised to Russian servicemen wounded during fighting in Ukraine, a clear indication that the Kremlin is trying to reduce growing short-term and long-term war costs and restore balance to the Russian economy.