Russia’s economy during wartime is facing a possible collapse, with Putin receiving warnings after spending over £400 million in a single night on a major drone attack in Ukraine. The recent attack by the Kremlin involved a significant missile and drone strike, resulting in the death of at least 15 people and injuring over 100 individuals.
In the assault, Putin deployed 73 missiles and 656 drones, costing an estimated £400 million on Monday night. Despite Ukraine’s air force intercepting a large portion of the attack, approximately 38 targets were still hit.
Reports have emerged that top financial officials in the Kremlin have cautioned Putin about the unsustainable war spending, as the Russian economy faces challenges. Both the Ministry of Finance and the Central Bank of Russia have highlighted “critical risks” to stability due to the escalating deficit in Ukraine.
Russia’s Ministry of Defence has accumulated a substantial deficit of around three trillion rubles (£30 billion) this year. Despite this financial strain, the Ministry has resisted budget cuts and instead requested additional funds to continue military operations in Ukraine, prompting Putin to reduce budgets in other departments.
Meanwhile, Ukrainian drones targeted the Ilsky Oil Refinery in the Krasnodar region, marking the refinery’s 16th attack during the conflict. Russia’s economy is at risk of recession following a downgrade in growth forecasts, with Putin seeking explanations for the economic challenges faced by the country.
Although Russia received some economic relief earlier this year due to increased oil prices following the conflict in Iran, the gains are insufficient to address the significant budget deficit. In another setback for Russia, the French navy, with assistance from Britain, seized one of Russia’s shadow fleet tankers, further disrupting covert oil operations that fund Putin’s actions in Ukraine.
Russia protested against the tanker seizure, calling it “illegal,” but the French president criticized Russia’s shadow fleet as a crucial funding source for Putin’s military campaign in Ukraine.