War economies boost Russia and Ukraine but don't help citizens

The report shows that the Russian and Ukrainian economies began to recover in the second quarter of the year after previous contractions. Growth in Russia rose to 1.3%, with inflation remaining around 6% and the main interest rate at 14%, which limits citizens' purchasing power despite increased production. In Ukraine, the economy grew by 0.6%, but it is still 20% smaller than its pre-war level, facing inflation close to 8% and debts exceeding $212 billion. External support continues, and the war remains a major obstacle to full recovery. Growth in both countries remains fragile and heavily dependent on field conditions and international aid, while the United States and the European Union have imposed new sanctions targeting Russia to disrupt its funding of the war.

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