Russia earns less from oil and spends more on war. So far, sanctions are working like a slow poison

The Russian ruble's wobble in value has exposed a crack in President Vladimir Putin's fortress economy, a vulnerability quickly plastered over by the Kremlin's economic team in a move that allowed the currency to regain its footing, at least for now.

Yet the patch — an emergency interest rate increase — cannot hide the dilemma at the heart of the Russian economy: how to fund the military while not undermining the national currency and overheating the economy with corrosive and politically embarrassing inflation.

Life in Moscow presents a facade of normality despite sweeping sanctions tied to the war in Ukraine and the departure of hundreds of name-brand Western companies.

Outdoor seating at restaurants and bars on the popular Bolshaya Nikitskaya street were packed on a recent evening with well-dressed residents enjoying balmy August weather. Loud music from DJs boomed from a nearby courtyard eatery. Malls haven’t changed at first glance, but where Zara and H&M once stood, shoppers find new clothing brands Maag and Vilet.