Kremlin appears to be preparing Russian economy for protracted war in Ukraine — ISW
2 July, 2022

The American Institute for the Study of War believes that Vladimir Putin's administration is trying to mobilize the Russian economy and industry to support the war against Ukraine – in preparation for protracted hostilities.

Analysts noted that on June 30, the Kremlin proposed changes to the law on the armed forces of the Russian Federation, which provide for the introduction of "special measures in the economic sphere." This will oblige Russian enterprises (regardless of ownership) to supply Russian "special military and anti-terrorist operations" with their products.

The proposed changes to the law prohibit Russian businessmen from refusing to accept government orders for "special military operations." It would also allow the Kremlin to change labor contracts and working conditions, such as forcing workers to work at night or on public holidays.

The Kremlin's explanatory note says that a long-running "special military operation" in Ukraine revealed a shortage of supplies, including materials needed to repair military equipment. It also states that Russian officials should "concentrate their efforts on certain sectors of the economy."

"Russian President Vladimir Putin is likely mobilizing the Russian economy and industry to sustain the ongoing war effort, but has not yet taken parallel measures to mobilize Russian manpower on a large scale," ISW analysts summarized.