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TL;DR:

• The three years of war have widened the gap between prosperous and struggling regions within Russia, reinforcing systemic problems. Nominal growth in wages and GRP (Gross Regional Product) in certain areas — primarily those tied to the defense industry — masks growing socio-economic inequality.
• Income disparities remain substantial: average wages in leading regions far exceed those in less developed areas, and income growth in wealthier regions often outpaces that in struggling regions.
• Unemployment, poverty, inequality, and instability contribute to higher alcohol consumption and crime. With the start of the war, alcohol sales growth in Russia doubled.
• These trends are already raising concerns: for instance, Russians are increasingly aware of inequality, noticing differences in living standards among social groups and across regions. The number of serious crimes rose by 10.2% during the three years of war
• The war has reshaped everyday life in Russia. Prices have surged, wages have grown, and contract soldiers on the front are earning sums the regions had never seen before. Yet the divide between the country’s most developed regions and its poorest is only expanding. Comparing life across Russia is also becoming harder, as official statistics are increasingly hidden from public view.

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At the start of the 21st century, Russia’s population was falling. But from 2008 to 2020, the number grew by nearly five million (from 142.7 million to 147.46 million, with the annexation of Crimea contributing 2 million to the total.) This growth more than made up for earlier declines, and over the two decades from 2000 to 2020, Russia’s population increased by a total of about 1.15 million.

In just three years of full-scale war, the country has lost nearly as many people as it gained in the previous twenty.

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In [the regions of] North Ossetia, Kabardino-Balkaria, Dagestan, Kalmykia, Chechnya, and Ingushetia, about half the population earns less than 30,000 ($376) rubles a month

At the same time, the gap between regions with the highest and lowest average wages has widened. In 2021, the highest average wage was in the Chukotka Autonomous District — 130,561 rubles ($1,788) — while the lowest was in Chechnya — 31,272 rubles ($428). By 2024, residents of Chukotka — still the undisputed leader — were earning an average of 184,970 rubles ($2,319), while in Ingushetia, which ranked last, the figure was just 39,964 rubles ($501).

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In Chuvashia, the defense industry now employs about 30 enterprises — five times more than before 2022. In some regions, advance payment mechanisms for companies fulfilling state defense orders have been enshrined into law. In others, growth has been driven by oil and gas extraction or by the expansion of local industries, often spurred by import substitution policies.

But the gap between regions in their share of the country’s total gross regional product (GRP) has widened, with the indicator falling in regions including the Yamalo-Nenets Autonomous District, Murmansk Region, and the Republic of Karelia. This points to a concentration of economic activity and resources in a limited number of regions, which in turn fuels inequality and widens development gaps across Russia.

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Purchasing powerlessness

The nominal growth in wages failed to keep pace with rising prices, leaving people’s purchasing power stagnant or reduced in a number of regions. In the Republic of Kalmykia, for example, the index fell from 1.33 to 1.28. Similar declines were observed in Dagestan, Tuva, Kabardino-Balkaria, Karachay-Cherkessia, Mari El, North Ossetia, and Chechnya. The drop ranged from 0.03 to 0.08 points, meaning people’s purchasing power in these regions decreased (data for 2021and 2025, respectively).

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According to Rosstat, before 2021 retail alcohol sales in Russia were growing at no more than 4% annually. But by 2022, that figure had reached 8.2%. Since then though, Health Ministry estimates show a slight decline in per capita alcohol consumption: in 2024, the average resident consumed 8.4 liters, compared with 8.5 liters in 2023 and 8.6 liters in 2022. By region, drinkers in northern and Far Eastern territories tend to consume more alcohol than those elsewhere.

With the start of the war, alcohol sales growth in Russia doubled.

The number of serious crimes rose by 10.2% during the three years of war

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