Russia's Economic Strain and Limitations

Russia is currently facing significant economic challenges, resulting in supply-side constraints that hinder its military operations. The country has reached near full employment with an unemployment rate of only 2.3%, leading to labor shortages that impact production capabilities, particularly in the military industry. Despite ramping up production and introducing new weapon systems, Russia's overall industrial potential has hit a ceiling, with many enterprises reporting a lack of personnel. These economic difficulties, coupled with rising inflation and slowing growth, suggest that Russia's ambitions in Ukraine are increasingly unattainable without a significant shift in the conflict dynamics.