In November 2025, Russia's industrial production fell by 7%. The decline was particularly noticeable in processing, food production, engineering, as well as the chemical and metallurgical sectors. This downturn follows two years of a military boom, during which the state invested heavily in weapons and ammunition manufacturing.
Despite increases in the output of shells and bombs, the Russian economy is facing falling revenues and production, along with shortages of certain goods. Butter, dairy products, and pork have disappeared from store shelves. At the same time, more stores are closing and the population is shifting to discount retailers and significantly reducing food expenditure.
The manufacturing sector faces serious challenges: tractor production dropped by 62%, bulldozers by 54%, and car output is nearly half of last year's level. Even the military-industrial complex, which previously enjoyed growth, has started losing volumes.
Most major state-owned companies face contract defaults and administrative proceedings over non-payments. The coal industry is also in crisis, with over 68% of enterprises operating at a loss.
Russia's financial reserves are dwindling, although oil and gas exports continue to support the budget for now. However, structural problems and record military spending cast doubt on further stability. While this is not an economic collapse, it highlights the high cost of a military-based economic model. The country is facing the question: can the war be sustained when the economy can no longer bear the strain?
