Putin envoy warns Russia economy may go 'berserk'

Moscow has been warned that Russia's economy may go "berserk" if it prioritizes the military-industrial complex at the expense of other sectors, according to comments from Boris Titov, Russia's envoy for international development. Titov, a former business leader and Putin's special representative, made the remarks to Russian business news outlet RBC. He cautioned that such an economic shift is unsustainable and can only last briefly, urging caution moving forward.

Titov's comments come amid growing pressure on the Russian economy to secure victory in the ongoing war in Ukraine. The country has implemented various measures, including tax hikes and property redistribution, to finance the war effort. However, the economic outlook remains bleak, with forecasts predicting a mere 0.4% growth this year. Many non-military sectors are experiencing stagnation or decline, and recent Ukrainian attacks on key economic infrastructure could further drag down growth.

Titov's warning mirrors a similar statement made by Moscow's technocrat mayor, Sergei Sobyanin, who likened killing an economy to killing the entire country. Additionally, the head of the state development bank, Andrei Klepach, was recently dismissed for highlighting the economic challenges posed by the war. Opinion polls indicate growing fatigue and support for peace among the population, compounded by rumors of a potential post-election military mobilization. The Kremlin has dismissed these rumors as false.