Russia risks its economy spiraling out of control if it focuses entirely on the needs of the military industrial complex. This was stated by Boris Titov, President Vladimir Putin’s special representative for sustainable development.

According to the businessman, the military and civilian sectors of the economy must remain in balance. He described the complete subordination of production to the war effort as a situation that can function only for a very limited time.

During the war, Moscow raised taxes, began redistributing assets and welcomed contributions from companies to finance the war effort. Most recently, it has threatened business owners who, according to the authorities, are failing to adequately protect their facilities from Ukrainian drones. Advocates of a hardline approach point to the reorganization of the Soviet economy under Joseph Stalin as a model.

The Russian economy is expected to grow by only 0.4% this year, with many civilian sectors stagnating or shrinking. Ukrainian attacks on refineries, online retailers and export infrastructure could further worsen the situation.

Moscow Mayor Sergei Sobyanin has also expressed similar concerns. Andrei Klepach, chief economist at the state development bank, lost his job after publicly drawing attention to the problems caused by the war.

Meanwhile, ahead of the September parliamentary elections, war fatigue is growing, as is support for a peaceful resolution. The Kremlin denies rumors of a large scale mobilization after the election.

(Reuters, bak)