Russians struggle with 'crazy' prices in shadow of war, sanctions

By AFP and Global Watch | 2025-06-17

MOSCOW -- Russian retiree Roman Paltievich stared at the prices for apricots, tomatoes and watermelons stacked high on stalls at a Moscow market -- foods that he now struggles to fit into his budget.

"The prices are crazy," lamented the 84-year-old, who said he can no longer afford cherries -- or even potatoes, a staple that is now three times more expensive than a year ago.

Russia's three-year-long military offensive on Ukraine has caused inflation to surge at home, a thorn in the side for the Kremlin, which strives to shield Russians from the fallout of its campaign.

Inflation breaches 10% barrier

Western sanctions have disrupted supply chains and dozens of consumer brands have left the country, while inflation is now running above 10%.

Meanwhile, deep labor shortages caused by massive recruitment by the army and arms manufacturers have seen both salaries and prices jump higher.

Russia's Central Bank on June 6 cut interest rates from a two-decade high, saying inflation -- including food prices -- was starting to come under control.

But for many hard-pressed Russians, it does not feel that way.

Paltievich's wife, Tatyana, stood next to him clutching a small punnet of strawberries -- a precious treat for her grandchildren that set her back 400 RUB ($5).

"We survived 1991, so now we're not afraid of anything," she said defiantly, in reference to the collapse of the Soviet Union and the economic chaos that followed.

Filling up the fridge

Many of those navigating the aisles at Moscow's Preobrazhensky market were also worried about high prices.

"I came here to buy chicken for my granddaughter. It's more expensive in the supermarkets, so I don't buy there anymore," Nikolai Kucherov, a 62-year-old freelance artist, told AFP.

"I had to forget about traveling. For the past three or four years, I've been thinking only about filling up the fridge," he said.

Military spending helps some

A huge surge in spending on the military has helped Moscow shield some Russians from the pain of inflation and sanctions.

Engineer Konstantin Zelenkov, 38, is one of those who have benefited from rising wages amid the government spending boom.

"Some things are becoming more expensive, but salaries are rising too, so it's staying roughly the same," he told AFP.

Central Bank chief Elvira Nabiullina also has pointed to rising wages and on June 6 said inflation was starting to moderate, though it remains well above the institution's 4% target.

"The high interest rate has led to a significant slowdown in inflation," she told reporters.

Overall "the rate of increase in food prices has slowed," she added.

Potatoes and bread ever costlier

But even Russian President Vladimir Putin was forced recently to address fears over a potato shortage that sent prices for the staple soaring.

For many across Russia, price rises feel never-ending.

"Starting even with bread, everything is getting more and more expensive," Irina Yakovleva, 68, said.

"We just have to limit ourselves," she added.