Putin’s attempt to take over industry brings the country back to its Soviet-era command economy.
It is simple to say that the Russian troops in Ukraine have now surpassed their battle-weary and outgunned counterparts.
Russian forces captured Lysychansk in the Luhansk region, a strategic city, by their forces. This suggests that Moscow was able to crush spirited resistance, which western officials reluctantly admit.
Vladimir Putin, on the other hand, is still far from taking all of the Donbas. Half of Donetsk remains under the control of tens to thousands of Ukrainian troops and the fighting in the east is taking a heavy toll upon his army.
According to the Guardian, an unnamed Western official claimed that Russia is having “very serious problems” with its munitions stocks and morale. Meanwhile, long-range weapons systems have begun to make a significant operational difference for Ukraine. This intelligence paints a mixed picture.
It is much more obvious how Russia is losing the economic battle and financial battle, as the conflict becomes a war of attrition, and Western sanctions are slowly taking effect. As military supplies become scarcer, even the protective blanket of Moscow’s enormous energy resources appears to be eroding.
The new laws that allow Moscow to effectively mobilize the economy and national workforce are a significant turning point in the history of events. Two bills are currently being voted through the Duma (Russia’s lower house) of parliament.
The Government can use the first to make businesses contribute to the war effort. The authorities will have the power to direct production to military purposes, such as vehicles, equipment, and munitions.
The second extreme is equally extreme. The state will have greater control over the workforce thanks to changes to labour laws. To help businesses meet the state’s demands, officials will have the power to issue measures such as overtime, weekend, and night shifts to address a shortage in skilled workers.
This is interventionist stuff. The Kremlin was able to avoid such drastic measures in the past due to continued oil and gas revenue flows from the West at a high price.
However, Europe is making more efforts to get rid of Russian reserves. Elin Rikova, an economist at the Institute for International Finance, said that the Kremlin was “preparing for the worst” as “soon all those revenues may run out”.
This announcement comes days after The Kremlin announced £24bn in spending cuts for the next three years in anticipation of a severe recession.
Many signs have indicated that Russia’s war against Russia is in trouble. Moscow’s plans for a quick victory were a complete failure. It had to refocus its efforts in Luhansk, Donetsk.
However, even with all the progress made, the Russian army is still suffering. Putin asked Sergei Shoigu, the Defence Minister, to order troops involved in the campaign to capture Luhansk for rest.
Russia underestimated the professionalism and determination of Ukrainian forces and was unwilling to arm Kyiv. However, Russia was also blindsided by its own shortcomings.
The Kremlin is becoming more isolated from the international system. Supplies are so limited that the Russian president has been forced to issue orders to the private sector for repairs to his tanks.
This admittance that Moscow lacks the essential equipment and materials to fight war shows that Moscow is incapable of fighting a war the same way the West can.
Even Moscow stopped pretending publicly that everything is perfect.
Yuri Borisov, deputy prime minister, acknowledged that “the burden on the Russian defense-industrial complex has increased substantially.” New bills spoke of the “short-term increased requirement to repair weapons, military equipment, and ensure supplies”.
It has also admitted that sanctions are beginning to have an impact on its economy. Officials stated that the West has attempted to cut off the Russian regime and the new laws are essential.
Moscow is clearly trying to regroup so Kyiv hopes it will allow enough time for crucial Western weaponry to arrive. This includes another shipment of M142 High Mobility Artillery Rocket Systems (USA) that has been a major strike at the heart and soul of Russia’s invasion.
Experts believe that the highly precise Himars launchers can pinpoint targets up to 300km away using GPS-guided missiles. However, this is only possible if the delivery of the weapons is significantly increased. Four of the weapons have been provided by Washington so far, and four more are expected to arrive before the month’s end.
Putin has been subject to many humiliations over the past months, but the attempted takeover by industry must be the most embarrassing. This includes its absurd attempts to revive the Muskovich vehicle, which was so horrible that it made the Lada look like a Maserati.
This is a desperate act that sends Russia back to its Soviet-era command economy.
It is a further confirmation of Russia’s self-inflicted fall from global superpower status to failed third-rate country and international pariah.
