The Russia-Ukraine struggle, which started with Russia’s invasion 4 years in the past, on February 24, 2022, has continued regardless of hundreds of casualties and quite a few rounds of peace negotiations. A joint report by the World Financial institution, European Union (EU), United Nations, and Ukraine, revealed on February 23, estimates the price of post-war building in Ukraine to be round $558 billion over the subsequent decade, practically 3 times the nation’s estimated GDP in 2025.
The struggle has taken a toll on each nations. Russia, one of many world’s largest economies, has been battered by sanctions imposed by the EU and the U.S. As proven within the chart under, its economic system grew by lower than 1% final 12 months and is estimated to develop by one other 1% in 2026.
The financial situation of Ukraine, one of many poorest European nations even earlier than the struggle, has worsened lately. The nation is reeling underneath mounting authorities debt, rising reliance on assist, and heavy injury to infrastructure. Its GDP development contracted by nearly 30% in 2022. Its economic system, which grew by simply 2% final 12 months, is estimated to get better to 4.5% in 2026.
Information present that folks in each Russia and Ukraine have been feeling the pinch of the battle.
Client worth inflation in each nations surged to a six-year excessive on the outset of the struggle in 2022. It has remained persistently elevated within the years since. For example, in Russia, inflation surged to 14% in 2022, moderated to five% in 2023, however subsequently elevated to 9% within the final 12 months.
The price of important gadgets equivalent to fundamental meals merchandise has risen considerably in each nations. In Russia, a kilogramme of bread elevated by 13% this month in comparison with a 12 months in the past and elevated by over 50% in comparison with 5 years in the past, in keeping with the Meals and Agriculture Group’s Meals Worth Index.
Equally, the worth of a kilogramme of rice elevated by 40% this month, in comparison with 2022. The chart under reveals the retail costs of choose meals gadgets in Russia and Ukraine.
In Ukraine, the price of fundamental meals merchandise equivalent to wheat and maize has elevated by 15% in comparison with 4 years in the past. The worth of wheat flour elevated from 12,633 Ukrainian Hryvnia (UAH)/tonne in February 2022 to 14,700 UAH/tonne in 2026.
Excessive ranges of defence spending additionally resulted in decreased allocation for social spending, training, and healthcare in each nations. In Ukraine, defence spending persistently accounted for greater than half of the nation’s spending since 2022. In distinction, expenditure on training, well being care, and social safety declined by greater than half when in comparison with 2021.
Defence spending surged to over 20% of the nation’s GDP in 2022 and was estimated to succeed in 26% by 2025. The sharp improve has widened the finances deficit, and the nation’s gross authorities debt accounted for over 109% of the nation’s GDP in 2025.
In Russia, defence spending accounted for nearly 30% of the full expenditure. The nation’s social spending didn’t lower drastically like Ukraine’s.
Nevertheless, a analysis paper revealed by SIPRI notes that Russia’s navy spending just isn’t all the time categorised underneath ‘nationwide defence’, however is usually recorded underneath different classes, equivalent to social assist. This makes it tough to seek out out its actual non-defence expenditure.
The struggle has come at a extreme human price. Final month, the Centre for Strategic and Worldwide Research estimated that 1.2 million folks had been killed, wounded, and lacking in Russia between February 2022 and December 2025. The corresponding determine for Ukraine was 5 lakh-6 lakh.
The information for the charts had been sourced from the Worldwide Financial Fund, Meals and Agriculture Group’s Meals Worth Index, World Financial institution, OECD Financial Survey, and Stockholm Worldwide Peace Analysis Institute
Revealed – February 26, 2026 08:00 am IST