This paper investigates the contemporaneous effect of conflict on civilians living outside of the conflict zone. Applying a multi-dimensional concept of well-being, it uses two large household surveys over 2012-2016 to analyze how the Russian-Ukrainian hybrid war affected the financial well-being and health of people in both countries. We find that the conflict significantly worsened financial well-being in both countries. The impact mostly operates by worsening expectations about financial well-being and is inversely related to the distance from the conflict zone. Our analysis indicates an increase in chronic diseases in Ukraine over a longer period. Mental health is negatively impacted in both countries at the earlier stages of the conflict. However, in Russia this effect is significant only in the region bordering the conflict zone, while in Ukraine it is significant in regions farther away from the conflict zone.
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- Financial well-being