While Moscow has been profiting from the ongoing conflict in Iran, economic experts warn that Russia's economy is now firmly in the "death zone". As CNBC reports, the Kremlin's temporary windfall from the war is masking deep structural problems that threaten to unravel Russia's financial stability.

A False Sense of Security

Russia's economy has been buoyed in the short-term by increased energy and arms exports to Iran, as well as the easing of Western sanctions. However, Reuters reports that this is merely a temporary reprieve, and that Russia's underlying economic weaknesses are rapidly coming to the fore.

"What this really means is that Putin and his cronies are clinging to power through any means necessary, even if it means sacrificing the long-term health of the Russian economy," says Dr. Olga Popova, a senior economist at the Brookings Institution. "The bigger picture here is that Russia is hurtling towards a full-blown economic crisis that could destabilize the regime."

Looming Collapse

According to BBC analysis, key indicators like capital flight, inflation, and industrial output paint a bleak picture for Russia. Experts warn that the country is teetering on the edge of an economic abyss, with the potential for a collapse that could rival the turbulent 1990s.

"Russia's economy is in the death zone right now," says Andrei Movchan, a fellow at the Carnegie Moscow Center. "The war in Iran has provided a temporary lifeline, but it's only delaying the inevitable. Without fundamental reforms and a shift away from dependence on energy exports, Russia's economy is headed for a catastrophic meltdown."

As our earlier coverage explored, the implications of such an economic crisis in Russia could reverberate far beyond its borders. For now, the Kremlin appears intent on clinging to power at all costs - but the clock is ticking on its fragile economic house of cards.

As this article points out, the stakes have never been higher for Russia and the global economy.