The Russian economy is now eating itself to death as Putin’s war on Ukraine destroys future capacity, former central bank adviser says
Fortune
by Jason MaFebruary 22, 2026
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The Russian economy has entered a critical "death zone," according to Alexandra Prokopenko, a former Russian central bank adviser and fellow at the Carnegie Russia Eurasia Center. In her recent analysis, Prokopenko likened the economic situation to a climber suffering from altitude sickness—where the body metabolizes its own muscle tissue for energy, unable to sustain itself over time. Russia's economy is in negative equilibrium, destroying its future capacity while barely holding together. While no immediate crash is imminent, key indicators show significant strain: GDP stagnation, oil revenue halved due to Western sanctions, and a rapidly depleting budget deficit. The country's economic structure has bifurcated into two systems—military and defense
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Originally published on Fortune on 2/22/2026