War Spilling Into Russian Regions Adds to Risks Haunting Economy

Residents evacuated from nearby areas at a temporary shelter in Belgorod, Russia, on June 2.Photographer: Olga Maltseva/AFP/Getty Images
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President Vladimir Putin’s invasion of Ukraine has cost Russia tens of billions of dollars as sanctions squeeze its economy and government revenue slumps. Now with the conflict crossing into Russian territory, the price of war is likely to grow even further.

The damage pales in comparison to the enormous loss of life and economic devastation that Russia has inflicted upon Ukraine. Still, an outbreak of full-scale hostilities in regions bordering Ukraine may cut Russia’s already meager growth forecast to 0.8% in 2023, according to Bloomberg Economics estimates.