Russia is preparing for a long war
Russia is preparing for a long war
Hello! This is Alexandra Prokopenko with your weekly guide to the Russian economy — brought to you by The Bell. I am joined this time by analyst Alexander Kolyandr. We focus this week on how the Ukraine war is gradually becoming key to both Russia’s economy and its politics and
Russia’s war in Ukraine is already in its 17th month. In that time, President Vladimir Putin has clearly demonstrated that he is not bothered by losses — whether they be financial, material, or human. His war will go on as long as he needs. And, judging by how the authorities have woven the so-called “special military operation” into Russian life, that will be a long time.
The Russian economy is set to completely reverse last year’s slump – something Putin has recently highlighted. Manufacturing and construction lead the way, alongside retail. In a broad sense, all three sectors are beneficiaries of the war. The defense sector, working in three shifts, is boosting production: in June, for example, the biggest increases were in finished metal products (+45.8% year-on-year); computers, electronics and optics (+71.6% year-on-year), radar equipment (+75.4% year-on-year) and electrical equipment (+32.1% year-on-year). Production capacities are running at their maximum.
This is one of the things I pointed out in the post on the permanent war. Russia since the beginning dumped into the war old and outdated equipment. They sent to the front those who they considered the less valuable soldiers at the same time initially they avoided to send recruits from the draft to minimise the political backlash within Russia.
Since the beginning they handled it as a long term attrition war.
It's great to have a new perspective on this conflict and I personally welcome your work and effort here. Thank you!
But I thought that the Slavic brainpan couldn't produce ball bearings?! /s