Russia's War Economy

Soon after the beginning of Russia's War on Ukraine, economists around the world began to speculate that the Russian economy would crash. These predictions were counterbalanced by claims from Russian economists that Russian industry would, in fact, greatly benefit from the war. While the economy did not crash, seeing only a 2.1% economic decline in 2022, the effects of the war have nonetheless been noticeable, especially in industrial regions. 

Economic geographer Natalya Zubarevich found that the regions that have benefited most from the war have been, unsurprisingly, areas where high percentages of the local economy are tied to the military-industrial complex. These include Tula, Ryazan, Yaroslavl, Tver, Penza, Sverdlovsk, Chelyabinsk, and Omsk regions, where there was higher demand and higher salaries for factory workers in 2022 than there was in 2021. But do these combined factors mean better lives for workers in these regions?

A report from Cherta found that the higher salaries advertised for factory jobs are tied to heavier-than-usual workloads or long shifts. Employees at these companies describe longer hours and high demand, but no change in salary or benefits. Long-time factory workers complain of under-educated and under-trained new employees being brought in to speed up production, leading to an actual increase in work for more experienced workers. 

While it may be true that industries in these regions are doing better business than before the war, it is evident that the workers themselves bear the negative consequences of this success.