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Example (Ruble turning to rubble? No signs of panic in the Kremlin.):

For Russians, now entering the second year of a rolling economic downturn largely brought on by systemic weaknesses, plunging oil prices, and the Kremlin's sanctions war with the West, the relative prosperity of the past decade is clearly ending. Many are reacting like recession-hit people everywhere by changing their buying habits, staying home instead of traveling, and eschewing new consumer debt. Most public opinion polling suggests they are digging in for worse.

How do you exactly understand the phrase to dig in in the context of this passage?

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From Dictionary.com "Digging in" I copied the relevant parts over.

Verb Phrase dig in, 1. to dig trenches, as in order to defend a position in battle. 2. to maintain one's opinion or position. 3. to start eating.

Basically they are getting ready to handle more problems. They feel that the recession isn't going away so they are getting ready for a bad economy.

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