Analysis: Russia's military production, state splurge ease sanctions pain

FILE PHOTO: Workers install Christmas and New Year decorations next to "Z", "V" and "O" symbols in support of the Russian armed forces involved in the military conflict in Ukraine, during snowfall at the Exhibition of Achievements of National Economy (VDNKh) in Moscow, Russia December 18, 2022. REUTERS/Yulia Morozova/File Photo

MOSCOW (Reuters) - Rising military production and huge state spending are keeping Russia's industry buzzing along, an analysis of recent data shows, helping soften the economic impact of Western sanctions and allowing Moscow to plough on with its campaign in Ukraine.

Last week's official data showed annual industrial output decline slowed in February, largely thanks to the defence sector, offsetting some of the damage wrought mainly by sanctions on Russia's key energy exports.