Russia’s ongoing war against Ukraine is increasingly impacting its own economic stability, leading to a surge in bond defaults reaching a 17-year high. The financial pressure is no longer limited to smaller businesses but is extending to the budget of Moscow itself. Currently, Moscow is experiencing a record deficit as it allocates significant resources to continue military operations in Ukraine. This escalating financial strain demonstrates the widening economic consequences of the conflict for Russia. The situation signals a potential for further economic instability within the country. The war’s costs are now directly impacting Russia’s ability to meet its financial obligations and maintain its economic standing. These developments highlight the substantial and growing domestic repercussions of the invasion of Ukraine.