Record 60% of Russians say their economy is getting worse as war costs mount

Key Points:

• Bonya, a former Russian TV presenter turned influencer in Monaco, went viral with an 18-minute Instagram video criticizing Putin's handling of the economy, gaining 32 million views and highlighting issues like flooding response, inflation, and rising taxes.
• A recent Gallup poll shows a historic rise in economic pessimism among Russians, with 60% believing conditions are worsening and 56% reporting declining living standards, reflecting growing discontent despite Russia's resilience amid sanctions.
• The social contract of "everyday patriotism," where Russians tolerated war hardships in exchange for stability, is fracturing as tax hikes and economic strain impact employment and small businesses, breaking Putin’s earlier promises.
• Russia’s fiscal health is deteriorating with sovereign wealth fund assets shrinking, a growing budget deficit, and a 45% drop in oil and gas revenues amid global oversupply and military strikes on refineries, limiting funds for defense spending.
• Experts warn that Russia’s main challenges are labor shortages, technology access, and production capacity constraints, with increasing government spending risking inflation rather than boosting military output, further eroding public confidence in institutions and job prospects.