Russia's Economy Faces "Collapse" Due to War Spending, Putin Envoy Warns

Boris Titov, a special representative of Russian President Putin and responsible for relations with international organizations for sustainable development, has sounded the alarm about a severe crisis in the Russian economy. He points out that excessive investment in the military-industrial complex is disrupting the economic balance and causing stagnation in the non-military sector. Titov expressed concern that while the military and civilian industries can coexist, Russia's current economy is overly skewed towards a "military economy." The government is raising taxes, transferring assets, and pressuring companies to take sufficient measures against Ukrainian drone attacks to fund military expenditures. Some militarists and government officials idealize slogans from the Stalin era during World War II, such as "Everything for the front, everything for victory." However, Titov criticized such economic management as short-term and unstable. Russia's economic growth is projected at 0.4% this year, but industrial and corporate activities in the non-military sector are stagnant or declining. Ukrainian attacks on Russian oil refineries, online retailers, and oil and grain storage facilities may also lead to economic growth lower than projected. Titov's views align with Moscow Mayor Sergei Sobyanin's statement that "the destruction of small and medium-sized businesses leads to the destruction of the entire national economy." Additionally, Andrei Klepach, deputy head of the Russian Development Bank, was dismissed for speaking about the economic challenges posed by the war. Political parties calling for an end to the war are banned from participating in the parliamentary elections scheduled for September. Opinion polls suggest that weariness with the war is growing among Russian citizens, with increasing support for a peaceful resolution.