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Russia’s economy is now completely driven by the war in Ukraine – it cannot afford to lose, but nor can it afford to win

By Renaud Foucart, Senior Lecturer in Economics, Lancaster University Management School, Lancaster University

Two years after its full-scale invasion of Ukraine, Russia is still facing an unprecedented number of economic sanctions. It has been excluded from major global financial services, and around €260 billion (£222 billion) of its central bank assets have been frozen.

Russian airspace is closed to most western…

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