Military spending is still a small part of overall GDP in Russia, so the claim that Russian economy is recovering due to cranking up of their military budget doesn’t make sense. A far more sound explanation is that decoupling from the west created economic niches that are now being filled domestically. And I think it is fair to say that Russian economy has been reorganized in the past two years with state owned enterprise such as Rostec taking a much more prominent role.
Rostec is a military manufacturer! further, what you’re describing isn’t supported by the article and doesn’t really sound like central planning. when Pemex has a good year Mexico is not any less neoliberal
I’m not going by just the article itself. Details of Russian economy are well documented.
Rostec is also a lot more than just a military manufacturer. Meanwhile, there have been plenty of articles over the past two years that explain how Russia is reverting back from liberal policies and putting the state in commanding heights of the economy.
A 2023 World Bank study gives a pretty good overview. In particular, it distinguishes between businesses of the state (BOS), that are at least 10% government owned by some government, and state owned enterprises (SOE), which are majority owned or more, and controlled, by the government.
Top line result is shown in the following chart:
And here’s another chart showing SOE in Russia compared with China https://cepr.org/voxeu/columns/state-owned-enterprises-global-economy-reason-concern
Russia’s high levels of SOEs is not far behind China by many measures.
Central bank plays a big role in Russia as well, and has large influence over the funding of the private enterprise. FT even moaned about state directed economy standing up to sanctions back in 2022.
Finally, here’s an article talking deprivatization of Russian economy.
