Russia’s overheating economy fueled by massive Kremlin spending on its invasion of Ukraine may be about to cool sharply amid mounting constraints on key sectors that have bolstered growth until now.

Labor resources are practically exhausted amid fierce competition for recruits between the military and businesses that’s also likely to limit further expansion of defense-related industries. The construction and banking sectors are no longer shielded from the impact of very high interest rates now that most state-subsidized mortgage programs were wound up last month.