Putin
Fuel stations in Moscow are limiting gasoline purchases again as Ukraine keeps hitting energy infrastructure in the country.

Fuel stations in Moscow are limiting gasoline purchases again as Ukraine keeps hitting energy infrastructure in the country.

Reuters detailed that seasonal demands is also contributing to the shortages, which are taking place even after Russian authorities banned exports of gasoline and diesel, eased quality requirements and began importing petroleum products.

Russian President Vladimir Putin had already admitted to shortages in June. Speaking to a Russian state TV reporter, Putin said there is a "certain deficit" of fuel as a result of Kyiv's offensive and vowed to protect the sites.

However, strikes have continued, further impacting the country's economy. In this context, the chief economist of Russia's state-controlled development bank VEB was fired after presenting a report warning that the country would face a large social crisis as a result of the continued economic impact of the war.

CNBC detailed that Andrei Klepach said Russia can't win a prolonged war of attrition after more than four years of military conflict.

"I believe Russia won't collapse, but I'm almost certain that we'll end up in a social crisis. We won't collapse economically, but our lag will widen, with all the ensuing consequences," he said in a May presentation. The content, however, was reported more recently.

The outlet cited independent Russian outlet The Bell, which cited unnamed sources who claimed that the firing was directly linked to the assessment.

The Russian embassy to the UK told CNBC that the country's fiscal position is "significantly stronger" than those of some Western countries. "The Russian economy remains resilient, as does the will of our people," a spokesperson said.

"Attempts to undermine Russia through economic pressure have not produced the results their authors expected," the spokesperson added.

Another report claimed that analysts worry that the country's shaky economy could actually lead President Vladimir Putin to escalate the war in Ukraine even further.

CNBC noted in another report that so far Russia's economy has performed slightly better than expected, experiencing some growth despite economic sanctions and its ongoing war against Ukraine. But the economy is being propped up by military spending, high taxes, and subsidized bank lending.

From April to June, Russia's economy grew by 1.3 percent, the best the economy has done since the first quarter of 2025, according to the website Trading Economics. The quarterly figure was also an improvement over the first quarter of this year when the Russian economy contracted by 0.2 percent.

Analysts worry that the Russian economy's overall shakiness might lead Russia to take aggressive action in a desperate attempt to end the war as soon as possible.

"If I were Putin, God forbid, I would probably decide that it is in my interest to escalate now and try to finish the war on my terms, than wait until the money ends sometime in the future," Alex Kolyandr, director for Europe at consulting firm Eurasia Group, told the outlet.