#Economy

For years, the Kremlin insisted sanctions didn’t matter while warning that any further pressure would trigger escalation. That contradiction may now be resolving itself, as the slow economic strain Russia once dismissed begins to accelerate.

Russia’s budget is coming apart at the seams. The war is extraordinarily expensive for Russia, and unlike Ukraine, it has no partners to help carry the burden. Its only real lifeline is the price of oil, which is why it is so important to preserve sanctions against Russia and prevent the Kremlin from turning oil revenues into ballistic missiles.