Since the conflict in Ukraine, Russia’s military and intelligence officials have made mistakes that led to a prolonged war of attrition, contrary to Putin’s expectations of a quick victory. However, the economic war with the West seems to be going better as Russia’s economy remains stable despite sanctions. This success is attributed to math-oriented officials like Elvira Nabiullina and Anton Siluanov, who have managed to keep the economy afloat amidst sanctions and a focus on military production.
Russia’s President Vladimir Putin has appointed Andrei Belousov, an economist without military experience, as the country’s defense minister. This move indicates that Russia’s wartime economy is a key part of Putin’s strategy to boost the military-industrial complex. Putin, known for portraying himself as a strong leader, may be facing an interesting situation where brains are proving to be more valuable than brawn among his top officials.
Reports show a notable GDP growth in Russia, rebounding from a contraction in the year of the invasion of Ukraine. Economic growth is expected to continue in the coming years, with the IMF forecasting further expansion. The economy is mainly sustained by military-related activities, government subsidies, and effective policymaking strategies.
Putin’s upcoming visit to China will likely spotlight Russia’s economic agenda, with a focus on military and trade relations. He will be accompanied by key officials including the new defense minister, finance minister, and central bank governor. This visit underscores the importance of economic stability and the military-industrial complex in Russia’s future strategies.
