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

President Vladimir Putin’s international development envoy warned on Tuesday that the Russian economy could become “berserk” if it is driven solely by the demands of the military‑industrial complex. The comment was made in the context of ongoing efforts to sustain the war effort, which the envoy described as placing the economy on a “war footing.”

According to the envoy, an exclusive focus on meeting the needs of the armed forces risks destabilising broader economic activity. He cautioned that such a singular approach could lead to imbalances, inefficiencies and a loss of control over the overall economic system.

The warning comes amid continued sanctions and international pressure that have already strained Russia’s financial and trade sectors. Officials have been seeking ways to mitigate the impact of these measures while maintaining production capacities for defense-related industries.

While emphasizing the importance of supporting the military, the envoy also highlighted the need to preserve a diversified economic structure. He suggested that neglecting civilian sectors could exacerbate shortages, reduce consumer confidence, and hinder long‑term growth prospects.

The statement underscores the challenges faced by Russian policymakers as they balance the immediate demands of the conflict with the stability of the national economy. No specific policy changes were announced, but the remarks signal heightened awareness of the potential risks associated with an overly militarised economic strategy.