Russians are beginning to feel the economic cost of the war in their household finances, with inflation-adjusted wages and disposable incomes declining after three consecutive years of growth.
The reversal comes as Russia’s broader economy grinds to a near standstill, civilian industries remain mired in recession and businesses face falling profits, higher taxes and mounting pressure to cut staffing costs.
Seasonally adjusted real disposable incomes, which account for inflation and mandatory payments, were 0.23% lower in June than at the end of last year, according to estimates by the Higher School of Economics’ Development Center. Real wages were down 0.15% in May from the end of 2025.
Disposable incomes fell sharply at the beginning of the year before recovering somewhat. Wages followed the opposite trajectory, rising in January and February before declining for three consecutive months. In both cases, Russians ended the first half of the year worse off.
Olga Belenkaya, an economist at investment firm Finam, attributed the pressure on household incomes to slowing wage growth as the economy cools, as well as falling income from businesses and property.
