Russia's Economy Shows Signs of Strain as Putin Balances Waging War, Living Standards

Russian economy grew significantly in 2022 but is showing signs of overheating due to labor shortages and dependence on defense sector
Putin faces a "trilemma" between financing the war, maintaining living standards, and preserving economic stability
The "economic bloc" of technocratic policymakers has proven more capable than Russia's military in managing the crisis
Western sanctions have been partially successful but could be more targeted, for example by encouraging brain drain
Policy of sealing off Russian money and contacts has entrenched propaganda narratives and stabilized Putin's rule