Four years into the Ukraine conflict, Russia's war economy is displaying signs of critical fatigue. Massive employment in arms manufacturing has created a severe nationwide labor shortage, while inflation remains entrenched between 5.5% and 6%, forcing the Central Bank to maintain punishing interest rates of 14.5%. Military territorial losses have accelerated for the first time since October 2023, and Ukrainian strikes have reduced Russian oil export capacity by 40%, undermining the energy revenues that finance the war effort. Analysts warn the model is unsustainable: the defense sector absorbs resources and talent while civilian sectors atrophy, and the Kremlin faces a paradox in which the war itself is deforming the economy it was meant to protect.