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The Russian labor market is also suffering; estimates suggest the nation has lost approximately 2.6 million workers in 2024, largely due to conscription and efforts to funnel labor into military and defense production. The government spends over 13 trillion rubles (roughly $172 billion) annually on military expenses, benefiting arms manufacturers but straining the overall economy. Private businesses face collapsing demand, rising loan costs, and fears of a credit crunch, with banking officials warning of an impending financial crisis if defaults continue to rise.