Business

Putin envoy warns Russia economy may go ‘berserk’

By Sohail Khan 1 September 2026, 7:48 pm

Benchmarks
Nifty24,055.80-24.61

Precious Metal
Gold (MCX) (Rs/10g.)152,160.00-2300.0

Enter search text:

Business News›News›International›World News›Putin envoy warns of Russian economy going 'berserk' on war footing

Read Today's Paper

Putin envoy warns of Russian economy going 'berserk' on war footing
Synopsis

In a bleak warning, President Putin's envoy cautions that the Russian economy could spiral out of control. Concentrating solely on military expenditures might jeopardize vital civilian industries and hinder overall economic progress. This strategy reflects the unsustainable Soviet wartime approach. Additionally, other officials have voiced apprehensions about the economic impact of the prolonged conflict, with signs of public war fatigue and a growing desire for peace negotiations among citizens.

Russian President Putin visits the Moscow Pedagogical State University — Russian President Vladimir Putin

MOSCOW: The Russian economy runs a risk of going "berserk" if it is run to focus entirely on the needs of the military-industrial complex, President Vladimir Putin's international development envoy was quoted as saying on Tuesday.

The comments by Boris Titov to business news outlet RBC were a rare sign of concern in Kremlin circles about the increasing pressure on the slowing economy to secure a victory in the 4-1/2-year war in Ukraine.

Titov, appointed in 2024 as Putin's special representative to international organisations ‌for achieving sustainable development ⁠goals, ⁠is a wealthy businessman who used to own Russia's leading producer of sparkling wine. He led 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 hiked taxes, embarked on property redistribution, welcomed contributions from businesses to finance the war, and, most recently, threatened business owners who are not doing enough to protect their facilities from Ukrainian drones.

War hawks and some government officials often ⁠refer to the ‌reorganisation of the Soviet economy under dictator Josef Stalin during World War Two as a model, citing the wartime slogan "Everything for the front, everything for victory".

'BERSERK' MODE IS TIME-LIMITED, TITOV SAYS

This approach ⁠is met with 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 on the eve of a major economic forum that Putin will attend this week in Russia's Far East.

RBC, which conducted the interview, noted that the term berserk derived from mythological Norse warriors who entered a trance-like state, possibly drug-induced, that enabled them to fight ferociously and ignore pain.

The Russian economy is expected to grow at only 0.4% this year, ‌and many non-military sectors are stagnating or shrinking. Ukrainian attacks on economic targets such as refineries, online retailers and oil and grain export infrastructure may push this growth rate even lower.

Titov's comments echo a statement by Moscow's technocrat mayor Sergei ⁠Sobyanin, who argued last month that "killing a normal economy is equivalent to killing the whole country".

Andrei Klepach, the chief economist at the state development bank, lost his job last month after highlighting the economic challenges posed by the war in a public speech.

Russia will hold a parliamentary election this month, from which the only political party calling openly for an end to the war had been barred. Opinion polls show growing fatigue from the war and support for a peace settlement.

Such sentiment is being exacerbated by persistent rumours of a large-scale post-election military mobilisation for a final push to seize the whole of the Donbas region of Ukraine. The Kremlin has called such rumours a hoax.

Add as a Reliable and Trusted News Source
Add Now!

(You can now subscribe to our WhatsApp channel)

(You can now subscribe to our WhatsApp channel)

Read More News on
Russian economyPutin envoyUkraine warBoris Titoveconomic forumKremlin concernsRBC

Enter search text:

Continue reading with one of these options:
Limited Access
Free
Login to get access to some exclusive stories

& personalised newsletters
Login Now

Unlimited Access
Starting @ Rs120/month
Get access to exclusive stories, expert opinions &

in-depth stock reports
Subscribe Now

Unlock Access to All Exclusives with ETPrime FREE TRIAL

15 Days Free: Unlock All ETPrime Exclusives, Market Tools & ePapers

Trial offer expiring in00 : 05 : 00

I'd rather pay ₹2599 now

Uh-oh! This is an exclusive story available for selected readers only.

Worry not. You’re just a step away.

Prime Account Detected!

It seems like you're already an ETPrime member with

Log out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits.

Unlock ETPrime's Exclusive Stories Today!

Subscribe to gain powerful insights on business, stock market and industry trends.

Big Price Drop! Flat 40% Off

Student Only Offer

Already a Member? Sign In now

Already a Member? Sign In now
Already a Member? Sign In now

Offer Exclusively For You

Save up to Rs. 700/-

ON ET PRIME MEMBERSHIP

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get Flat 40% Off

Then ₹ 1749 for 1 year

Avail Offer

Offer Exclusively For You

ET Prime at ₹ 49 for 1 month

Then ₹ 1749 for 1 year

Avail Offer

Special Offer

Get flat 40% off on ETPrime

Avail Offer
Avail Offer

Claim NowAlready a Member? Sign In now

Need Assistance?

Connect with an ETPrime expert for personalized support and guidance

+91 9484700004

' + h3 + '

' + h4 + '

' + listing + '

What’s Included with

ETPrime Membership

1Exclusive Insights That Matter

Uncover the truth with our investigative stories

Make strategic moves using the real-world case studies

Read industry-specific stories to identify emerging trends

Spot opportunities with in-depth insights that matter

Trump temper on H-1B visas is forcing Indians to do these things to stay put in US

What Adani’s US indictment means for India Inc’s overseas fundraising
Why veterans like Reliance, L&T are on acquisition spree? Aswath Damodaran has an answer.

Will China’s dollar bond sale in Saudi Arabia trump the US in financial world?
Huawei launches its own OS to compete with Google and Apple. But can it win beyond China?

The problem with lab grown diamonds
Why a falling rupee is a better option for the economy

A list of top 20 momentum stocks that have delivered massive returns in one year