Russia's war spending and labor exodus are bringing back a Soviet Union economy, IMF official says

• Economic conditions in Russia are similar to those of the Soviet Union, IMF's deputy manager said.
• The country is spending heavily while consumption has seen a considerable pullback.
• Wartime expenditures and a weaker labor force mean tough times ahead for the nation.

The International Monetary Fund's upgraded forecast for Russia's growth isn't an endorsement of good times ahead for Moscow, the institution's managing director told CNBC.

In fact, Russian economic conditions are starting to look more and more like the country's 20th-century predecessor, where high production levels clashed with weak demand.