In this presentation I shall examine the economic and financial effects of the war Russia started. The main focus will be on the economic and financial effects on Russia itself. Sanctions, general uncertainty and companies' own actions have already taken their toll on the Russian economy, and its capability to wage war has been reduced – both in terms of financial as well as material resources. Growing decoupling from the rest of the world also means slower growth going forward. Devastation – also in terms of economic lessons – is largest for Ukraine, obviously. The country’s reconstruction will require concentrated efforts of the international community for several years, if not more. Russia’s war has also sparked off higher energy prices globally and especially in some European countries.