Putin's economic envoy warns military dominance could destabilize Russia

Boris Titov, Putin’s special representative for sustainable development, warned that Russia’s economy could become unstable if the military-industrial complex dominates, urging a balanced mix of military and civilian needs. He described a dangerous ‘berserk mode’ that can only last for a limited time and highlighted the tradition of balancing civilian and military sectors, a theme echoed by Moscow officials. Reports note Moscow’s steps to fund the war—tax changes, redistribution of property, and pressure on businesses to safeguard facilities from Ukrainian strikes—while some factions invoke wartime Soviet-era models to justify heavy focus on defense. Despite these pressures, growth is forecast to be only around 0.4%, with many non-military sectors stagnating or contracting, intensifying concerns about broader economic sustainability. The discourse signals rare Kremlin concern about the economy amid the war, paired with growing resistance from various sectors. Observers warn markets and policymakers to watch for economic policy shifts that could affect the duration and intensity of Russia’s military campaign in Ukraine.