Kremlin official says Russian economy could spiral out of control – Reuters

Boris Titov, Russian ruler Vladimir Putin's special representative for international development, has said that the Russian economy risks spiralling out of control if its management becomes entirely focused on the needs of the military-industrial complex.

Source: Reuters

Details: Titov's comments, made in an interview with Russian business outlet RBC, were a rare expression of concern from Kremlin circles about mounting pressure on the slowing economy.

Titov, who was appointed Putin's special representative for relations with international organisations on achieving sustainable development goals in 2024, is a wealthy businessman who previously owned a leading Russian sparkling wine producer. He has headed an influential business lobby and ran for president in 2018.

"Military and civilian economies have ⁠always existed in symbiosis everywhere. Many technical inventions that are useful for all originated within the military-industrial complex. The key ​lies in maintaining balance," Titov told RBC.

Russia has raised taxes, begun redistributing property, welcomed contributions from businesses to fund the war and recently threatened business owners who fail to do enough to protect their facilities from Ukrainian drones.

Supporters of the war and some government officials frequently cite the reorganisation of the Soviet economy under dictator Joseph Stalin during World War II as a model, invoking the wartime slogan "Everything for the front, everything for victory".

This approach is facing cautious but growing resistance from various sectors.

"This ​is not an economy at all, it's a kind of 'berserk mode' that can only exist for a very limited time, and the necessity of ‌which ⁠should be considered very carefully," Titov said.

The Russian economy is expected to grow by just 0.4% this year, while many non-military sectors are stagnating or contracting.

Ukrainian strikes on economic targets such as oil refineries, online retailers and oil and grain export infrastructure could reduce this growth rate even further.

Background: Kremlin ruler Vladimir Putin is hoping for a personal meeting with Chinese leader Xi Jinping to persuade him to approve the new Power of Siberia 2 gas pipeline.

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