Russia’s economy is growing as Western sanctions fail to impede President Vladimir Putin’s war against Ukraine. On Monday, the World Bank said Russia has gone from being an upper-middle-income country to a high-income country. Military investment and major government subsidies have spurred this economic growth.

After the initial full-scale invasion of Ukraine in 2022, the Russian ruble lost 40% of its value. Western companies left the country and the international banking system, SWIFT, closed to Russian banks. Western states also banned the exporting of weapons technology to Russia, the importing of Russian gold and diamonds, and sanctioned individual oligarchs.