The Strategic Puzzle: Why Russia Did Not Collapse

When Russia invaded Ukraine in 2022, many experts predicted that its economy would collapse under the weight of severe sanctions, but it has not experienced economic collapse. Instead, the government seemed to have a risk plan and responded rapidly by tightening monetary controls, increasing military spending, and supporting domestic businesses. These measures sustained the Russian economy and transformed the country into a society structured to endure prolonged conflict. (Dyner, 2025). This analysis examines the mechanisms behind Russia's economic resilience and explores the implications for global security.

The process was more complex than initially anticipated. To save economic stability, Russia swiftly restricted capital outflows, increased interest rates, and intensified industrial production. A dedicated council accelerated wartime decision-making, while tax incentives and subsidised loans supported the defence industry, and all these measures enabled the Russian economy to withstand the initial shock of war. (Fenton, N.& Kolyandr, A., 2025).  Many studies by Western institutions suggest that Russia's economic robustness is associated with the transformation of its economy into one mobilised for extended conflict (Connolly, 2023; IMF, 2024). In this context, the Russian economy focuses on strategic security sectors and the military industry.

In 1941, Harold…