Russia goes to vote with war economy lifting living standards

Two years after the Kremlin's invasion of Ukraine, many in Russia have reason to feel the wartime economy is working well for them in a setback for Western sanctions designed to pit the populace against the country's leader, Vladimir Putin.

Wages have soared by double digits, the ruble has stabilised, and poverty and unemployment are at record lows. For the country's lowest earners - a key constituency for the Kremlinsalaries over the last three quarters have risen faster than for any other segment of society, clocking an annual growth rate of about 20 per cent, Federal Statistics Service data show.

Ahead of Russia's March 15-17 presidential election, with Putin all but assured of winning a fifth term, public discontent over the economy largely isn't there. Though the war has left hundreds of thousands killed or wounded, and long-term challenges continue to build with officials still wrestling inflation that is running ahead of their target, for now, the Russian leader is pointing to the economy and claiming success.

Russia is approaching the election "in good form," said Sofya Donets, an economist at Renaissance Capital, pointing to "very optimistic" consumer sentiment and assessments of the current and future financial situation in surveys. "They already show a level that does not at all resemble a crisis."

The government is spending massively on social support for families, pension increases, mortgage subsidies and compensation for the relatives of those serving in the military. The price tag for Putin's preelection promises may total tens of billions of dollars over the next six years.