Russia's Oligarchs and the War on Ukraine

Abstract

As Russia's war on Ukraine drags on, it becomes increasingly costly. This analysis focuses on three aspects of Russia's political economy of war. First, it argues that Russia can be described as a militarized kleptocracy in which, despite massive government spending, grand corruption has constrained the state’s capacity to wage war. Second, it examines how, initially, most of the oligarchs were critical of the war. Fearing retaliation from the Kremlin, however, they adapted and became reluctant accomplices supplying the military-industrial complex. Third, the article explores how oligarchs adopted various strategies to shield their wealth from Western sanctions and from the state. The piece ends with a discussion of the future of militarized kleptocracy and the use of oligarchic assets for Ukraine's economic recovery.