Russia’s Economy Is Facing Increasing Pressure. Analysts Worry Putin Might Escalate Before The Money Runs Out.

Analysts worry that Russia's shaky economy could actually lead President Vladimir Putin to escalate the war in Ukraine even further.

CNBC reported that so far Russia's economy has performed slightly better than expected, experiencing some growth despite economic sanctions and its ongoing war against Ukraine. But the economy is being propped up by military spending, high taxes, and subsidized bank lending.

From April to June, Russia's economy grew by 1.3 percent, the best the economy has done since the first quarter of 2025, according to the website Trading Economics. The quarterly figure was also an improvement over the first quarter of this year when the Russian economy contracted by 0.2 percent.

Analysts worry that the Russian economy's overall shakiness might lead Russia to take aggressive action in a desperate attempt to end the war as soon as possible.

"If I were Putin, God forbid, I would probably decide that it is in my interest to escalate now and try to finish the war on my terms, than wait until the money ends sometime in the future," Alex Kolyandr, director for Europe at consulting firm Eurasia Group, told the outlet.

Ukraine is increasingly attempting to take the war to Russia. This weekend Ukraine launched a massive attack that involved hundreds of drones. According to Euronews, several drones struck Wildberries' single largest warehouse, starting a massive fire. Wildberries has been described as Russia's Amazon, and it has been increasingly under attack by Ukrainian drones.

Seven logistics hubs belonging to the online retailer have been taken out. The warehouse strike this weekend occurred at the Koledino industrial park in Podolsk in the Moscow region, around 260 miles from the Ukrainian border.

Repeated Ukrainian attacks on oil refineries have led to fuel shortages throughout much of Russia. The wire service reported that the crisis began in May, but by the end of July the situation had seemed to stabilize. However, a fresh wave of drone attacks starting in early August had again led to restrictions and gas lines in parts of Russia.