Key facts
- Envoy Boris Titov warned Russia's economy could enter unsustainable 'berserk mode' if solely focused on military needs.
- Titov emphasized the importance of balance between military and civilian economies.
- The Russian economy is expected to grow by only 0.4% this year, with non-military sectors stagnating.
- Concerns about the war economy's impact have been voiced by other officials, including Moscow mayor Sergei Sobyanin.
- There are indications of growing war fatigue and support for peace in Russia.
President Vladimir Putin's international development envoy, Boris Titov, has warned that Russia's economy risks entering a dangerous and unsustainable 'berserk mode' if it becomes solely focused on the needs of the military-industrial complex. Titov, a wealthy businessman, stated that a balance between military and civilian economies is crucial, as many innovations originate from the military sector. He described the current situation as a temporary state that requires careful consideration.
The Russian economy is facing significant pressure, with projections indicating only 0.4% growth this year. Many non-military sectors are reportedly stagnating or shrinking, and Ukrainian attacks on economic targets could further depress growth. Titov's concerns echo those previously expressed by Moscow mayor Sergei Sobyanin, who warned that 'killing a normal economy is equivalent to killing the whole country.'
Reports suggest growing fatigue with the ongoing war in Ukraine among the Russian population, with some opinion polls indicating support for a peace settlement. These sentiments are reportedly being exacerbated by rumors of a potential large-scale military mobilization following upcoming parliamentary elections, though the Kremlin has dismissed these as hoaxes.