Three myths about the Russia economic war
Al Jazeera
February 24, 2026
AI-Generated Deep Dive Summary
The economic impact of Russia’s war in Ukraine has been devastating, with both nations bearing significant costs. Four years into the conflict, Ukraine faces an estimated $588 billion reconstruction bill, nearly three times its GDP. While the physical toll is evident, the ongoing economic war between Russia and the West has become a critical battleground, shaping the future of the conflict. However, this battlefield is often obscured by misinformation and propaganda, making it essential to address the myths surrounding Russia’s economic situation.
One myth is that Russia can afford the costs of the war without significant strain. Despite appearances, the Russian economy is suffering greatly. The loss of its largest gas export market, Europe, has cost Russia billions annually—down from 150 billion cubic meters to just 38 bcm in recent years. With European gas prices at record highs, Russia’s annual losses could reach $40 billion or more. Additionally, over $335 billion in Russian sovereign assets remain frozen globally due to sanctions, with little hope of recovery. Even Russia’s National Wealth Fund, a financial reserve, is dwindling rapidly, potentially depleting by year’s end if oil prices don’t rise.
Another misconception is that the U.S. has lost interest in the economic war against Russia.
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Originally published on Al Jazeera on 2/24/2026