The Pie: An Economics Podcast War Economies: How Ukraine and Russia Are Adapting in Year Three
Apr 15, 2025
In a deep dive with Konstantin Sonin, a John Dewey Distinguished Service Professor at the University of Chicago, listeners gain insight into the stark economic realities reshaping Ukraine and Russia post-invasion. Sonin discusses Ukraine's resilience and innovative defense production amid war, while reflecting on shifting attitudes towards U.S. support. He also examines how Russia's economy withstands sanctions and the geopolitical implications of its energy sales to India and China, hinting at what the future might hold for both nations.
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Ukraine's Advanced War Economy
- Ukraine produces 30 to 40 percent of its own munitions, a huge increase aided by foreign help and government efforts.
- The weapons used today are extremely advanced and mostly developed this year due to the war's demands.
Ukraine's Post-War Economic Potential
- Post-war Ukraine will depend heavily on foreign partners for rebuilding, similar to other Eastern European countries after socialism's collapse.
- The war has strengthened Ukraine's government, reducing corruption and improving investor confidence.
Russia's Economy Amid War
- Russia's economy is weakened and social spending is cut, but it is not collapsing despite the war.
- People live worse, but the state remains functional without approaching catastrophe.
