Putin's envoy warns Russian economy could spiral if fully militarized
Boris Titov cautioned that concentrating the Russian economy on the war effort could push it into a short-lived, unsustainable “berserk” mode.
Boris Titov, appointed by President Vladimir Putin as the envoy for international development, told business outlet RBC that an economy focused exclusively on the military-industrial complex could go "berserk" and is only viable for a limited period. He highlighted the historic symbiosis between civilian and military sectors and warned against abandoning that balance. Titov's comments come as Russia grapples with a projected 0.4% growth rate, tax hikes, property redistribution, and increasing demands on businesses to fund the war.
He referenced recent pressures on firms to protect assets from Ukrainian drone attacks and echoed concerns voiced by Moscow mayor Sergei Sobyanin. The remarks were made on the eve of a Far East economic forum that President Putin will attend, underscoring growing unease within the Kremlin about the war's economic toll.
Why it matters
The warning signals potential economic instability in Russia as the war effort dominates policy and resources.
How this story developed
- Aug 14 Russia claims strikes on Ukrainian rail hub and vessels as drones hit Russian ports
- Aug 22 Ukraine struck the Progress Rocket and Space Center in Samara with a missile.
- Aug 23 British Prime Minister Andy Burnham will visit Ukraine on Aug 24, where he will announce support for local assembly of the SCALP long-range cruise missile.
- Aug 25 Burnham announced plans to travel to the United States in September to lobby President Trump on Ukraine’s Patriot missile needs.
- Aug 25 CIA chief John Ratcliffe arrived in Moscow for an unannounced meeting, a rare high-level contact between the United States and Russia.
- Aug 25 Washington warned allies to sever business ties with Iran under threat of secondary sanctions.
- Aug 26 John Ratcliffe was identified as being on the C‑17 that landed in Moscow.
- Aug 26 Kremlin spokesman said Putin had been informed of Ratcliffe's discussions with Russian security services.
- Aug 26 The UK announced the transfer of Storm Shadow missile design data to Ukraine.
- Aug 27 Ukrainian forces launched close to 800 drones toward Moscow in a coordinated operation.
- Aug 30 Russia announced preparation for large‑scale assaults on Ukraine’s energy facilities.
- Aug 30 Death toll rises to 38 in the Myla ammunition depot strike.
- Sep 1 Sixth consecutive day of Russian missile and drone attacks kills at least 12 in the Kyiv region.
- Sep 1 Lithuanian President Gitanas Nausėda said the Moscow visit achieved its declared purpose of reducing regional tensions.
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