The Russian economy is losing resilience amid the prolonged war in Ukraine and sanctions. Key sectors are experiencing a downturn, and banks are preparing for possible government bailouts, Bloomberg reports.

Vasily Astrov, expert on the Russian economy at the Vienna Institute for International Economic Studies, told Newsweek that "inflation has really subsided markedly over the past few months. The outcome of this policy has been a marked cooling of domestic demand, with the welcome side effect of rapid disinflation.