Economist Says Ukraine’s Strikes on Russia Are the Only Way to Force Putin to Respond

How Ukraine’s Military Actions Are Impacting Russia’s Economy

According to Главком: In an interview with Glavkom, prominent Russian economist Vladislav Inozemtsev argued that attacks by the Ukrainian Armed Forces on Russian military and industrial infrastructure represent the sole means of compelling both Russian society and its leadership to truly grasp the war’s consequences. According to him, these operations have proven effective because they force the system to acknowledge threats. Inozemtsev noted that while most Russian experts had previously dismissed such strikes as insignificant, real-world events have now demonstrated their critical role in shaping domestic awareness.

The economist also highlighted that Russia’s military spending is rising by roughly 30%. He explained that during the war, the government’s economic team convinced President Vladimir Putin not to further increase military outlays, leading to a 2026 budget that actually includes planned cuts in this area. However, Inozemtsev warned that this will not halt the economy’s downward trajectory, which is forecast to slip into recession with an annual contraction of 1–2%.

The War’s Economic Toll on Russia

Vladislav Inozemtsev further emphasized that the conflict has severely damaged both Russian territory and its economy, stating that Ukrainian strikes will accelerate the economic decline, though they will not trigger a catastrophic crisis.

“In essence, Putin is destroying the Russian economy. The effect of Western sanctions has been compounded by the effect of his own madness. Today, that madness is far more dangerous for the Russian economy than any external factor,” stressed economist Vladislav Inozemtsev.

Following the 2022 mobilization, the Kremlin sought to shield ordinary Russians from the war’s daily impact. Yet new taxes, inspections, a crackdown on businesses, and asset seizures have emerged as additional pressures on the economy. Ukrainian missile and drone strikes on key Russian energy infrastructure have also turned the war into a fuel crisis, further complicating the country’s situation.

Inozemtsev’s remarks underscore the significance of Ukraine’s military operations in the context of the war and their ripple effects on Russia’s economy and society. Rising military expenditures and a looming recession point to serious challenges facing the country amid the conflict. These factors could have long-term implications for Russia’s stability and economic future.

As the conflict continues to evolve, the implications for the Russian economy are becoming increasingly severe. In light of the pressures highlighted by economist Vladislav Inozemtsev, it is crucial to understand how these military actions are contributing to a broader economic crisis in Russia. For a deeper analysis of the challenges facing the country, explore how the war is intensifying the financial strain on Russia's economy in our detailed report on the deepening economic crisis.