In a recent meeting with Sergei Chemezov, CEO of Russia’s state-owned defense corporation Rostec, President Vladimir Putin emphasized the importance of pursuing territorial gains in Ukraine, disregarding ongoing ceasefire discussions. As the conflict continues to evolve, Putin acknowledged the looming risk of economic stagnation, insisting it “should not be allowed under any circumstances.” His comments highlight two very important points. They respond to dual military aims and to the strain the Russian economy is experiencing in this extended war effort.
Putin’s claims come as Russian troops intensify their assaults across the expansive 1,200-kilometer frontline. In particular, they are concentrating on the hotly contested city of Pokrovsk in Donetsk, where some 111,000 soldiers are currently deployed. According to recent reports, Russian troops are advancing dangerously far into multiple regions. This move shows the Kremlin’s resolve to continue claiming land, despite some economic prognostications creating an optimistic picture.
Economic Strain and Military Spending
The economic landscape in Russia has shown signs of strain as the central bank’s head, Elvira Nabiullina, warned that the country’s financial buffers are nearing depletion. Add rapidly rising prices into the mix and you’ve got a real toxic brew. Economic Development Minister Maksim Reshetnikov characterized these increases as a harbinger of moderate economic growth in 2021.
Russia’s military expenditure remains a focal point of its fiscal policy, accounting for nearly 40% of total public spending and over 6% of the nation’s GDP. Rostec has been at the center of the Kremlin’s military buildup. It has created an estimated 80% of the equipment deployed against Ukraine, reports state. As of 2021, the biotech behemoth’s manufacturing capability surged to nearly 10,000 times that amount. Revenues grew to a mind-boggling $46 billion last year. This massive outlay for military capabilities only to further project power abroad even while the economy falters reflects the Kremlin’s continued prioritization of defense capabilities.
“We must understand that many of these resources have been used up.” – Elvira Nabiullina
With all these economic pressures, Russia is still managing to keep a very high operational tempo on all their military activities. The country is said to be producing up to 200 Iranian-designed, long-range Shahed drones per day, maintaining an active inventory of over 6,000. This drone capability is supplemented by an additional 6,000 decoy drones that seek to confuse enemy air defenses. Ukrainian officials claim that Russian forces have used more than 23,000 small, suicide “kamikaze” drones on the frontlines so far this year.
Kremlin’s Stance on Territorial Gains
Putin’s rhetoric reflects a firm belief in Russia’s claim over captured territories. During his recent address, he stated, “We have a saying … where the foot of a Russian soldier steps, that is ours.” This claim serves to support a broader story that aims to justify the resumption of military activity in the face of international condemnation and war crimes.
The Kremlin’s eyes are squarely on its territorial ambitions. Consequently, promising diplomatic alternatives have taken a backseat, and discussions about a ceasefire are not at the top of the agenda. Putin’s statements suggest a conviction that Russian and Ukrainian peoples are inseparable, claiming, “I consider the Russian and Ukrainian peoples to be one people.” These declarations, though, announce the Kremlin’s broader geopolitical agenda, and at heart, its refusal to accept Ukrainian sovereignty.
“In this sense, all of Ukraine is ours.” – Vladimir Putin
As the chilling military campaign continues, it becomes clear that it is part of a much wider strategy. This strategy emphasizes consolidating control over contested areas and addressing domestic economic issues. Experts warn that this could prove to be an ineffective tactic to achieve long-lasting impacts on the Russian economy.
The Toll of Warfare
As the conflict continues, the military and civilian sectors in Russia are both starting to feel the strain of war. These prolonged military operations have not only drained the country’s financial resources but impacted domestic opinion on the wartime efforts. Recent news reports from Ukraine tell us that Russian air and drone strikes have increasingly targeted the country’s critical infrastructure. Ukrainian President Volodymyr Zelensky underscored the magnitude of these attacks.
“477 drones were in our skies, most of them Russian-Iranian Shaheds, along with 60 missiles of various types. The Russians were targeting everything that sustains life.” – Volodymyr Zelensky
Umerov, a senior Ukrainian military official, points to the evolving tactics of the Russian forces. Special operations chief Generyo Tantsyura recently told the Rada that they are now firing “up to 500 Shaheds a night,” as well as ballistic and cruise missiles, to drain Ukraine’s air defenses. He underscored the evolving Ukraine’s response strategies even in light of these ongoing threats.
“Constant intellectual struggle — the enemy regularly changed algorithms, and Ukraine adapted tactics in response.” – Umerov
Yet as both sides struggle with the effects of ongoing bloody battlefield impacts and economic consequences, the potential for peace seems increasingly unlikely. Vladimir Putin’s overly ambitious territorial aims despite Russia’s current economic turmoil make for a dangerous reality, one that could extend the war further.
