Russia’s economy during wartime is facing a potential collapse, with a warning issued to President Putin following a massive drone attack on Ukraine that cost over £400 million in a single night. The recent onslaught by the Kremlin included one of the largest missile and drone strikes in Ukraine this year, resulting in the death of at least 15 individuals and leaving over 100 injured.
During the attack, Putin deployed 73 missiles and 656 drones, amounting to the estimated £400 million expenditure on Monday night. Despite Ukraine’s air force successfully intercepting around 88% of the payload, approximately 38 targets were still hit.
Warnings have surfaced from Russia’s Ministry of Finance and the Central Bank regarding the unsustainable nature of Putin’s war expenditures, signaling critical risks to economic stability as deficits in Ukraine escalate. Throughout this year, Russia’s Ministry of Defence has accumulated a substantial deficit of roughly three trillion rubles (£30 billion), prompting Putin to cut budgets from other departments to fund military operations against Ukraine.
In a separate incident, Ukrainian drones targeted and set fire to the Ilsky Oil Refinery in the Krasnodar region, marking the 16th attack on the facility during the conflict. Russia’s economy is precariously balanced, with recent cuts to forecasted growth in May indicating a looming recession. Despite a temporary economic boost earlier this year due to rising oil prices from the conflict in Iran, the gains are insufficient to address Russia’s significant budget shortfalls.
Britain recently assisted the French navy in seizing a Russian shadow fleet tanker, named the Tagor, around 400 nautical miles off the coast of Brittany. The sanctioned vessel was boarded with UK support, leading to accusations of illegality and international piracy from Russia, countered by claims that the shadow fleet plays a crucial role in funding Putin’s ongoing operations in Ukraine.