Strains Mount in Russia's War Economy as Developer Stock Sinks and Crimea Loses Power

Pressure on Russia's domestic economy showed in several places on Monday. Shares in the country's largest property developer fell about 8 percent, with the Russian business channel Bankrollo reporting that the stock hit a new low as the real-estate sector strains under high interest rates and weakening demand.

Infrastructure disruption added to the picture. The eastern part of Crimea lost electricity after damage to the power grid, with the regional utility Krymenergo confirming the supply failure. By Monday evening, Russian-installed authorities had gone further, publishing rolling blackout schedules for several towns and districts, including Alushta, Dzhankoi, and the Nyzhnohirskyi, Chornomorske, and Krasnoperekopsk areas, with power cut in rotation roughly every three hours. Authorities also suspended fuel sales at filling stations, limiting supplies to state services, after Ukrainian drone strikes on Russian refineries and energy facilities. Separately, tour operators said they were working out alternatives to children's holidays in Crimea, handling each case individually amid the security situation in the annexed peninsula.

These developments are consistent with the broader argument that Russia's growth model, built on demand recovery plus rising prices, is reaching its limits. Falling business incomes, high borrowing costs, and war-related disruption are converging, even as official output figures remain positive.