Russia’s Economy Strengthens, Military Unbowed

Western sanctions have not weakened the Russian economy and have even brought renewed activity in some sectors, Philip Pilkington, senior research fellow at the Hungarian Institute of Foreign Affairs, told Origo. The expert believes the Russian military has not been weakened either, while Ukraine is increasingly being forced to rely on drone warfare.

Philip Pilkington, senior research fellow at the Hungarian Institute of Foreign Affairs (Photo: MTI)

Mr. Pilkington said everyday life has not changed dramatically. As he told Origo, he does not see too many changes, since Russia had already begun adapting to restrictions after 2014. As an example, he noted that Russia gradually stopped buying European wines and in time built up its own domestic wine industry.

He said sanctions have mainly affected the wealthier class with Western ties, who now have to pay far more for certain Western products because they can obtain them only through third countries.

Speaking about the state of the economy, he said living standards have risen rather than fallen since sanctions were introduced. He added that strong economic growth is already causing labor shortages and inflationary pressure, prompting the central bank to try to cool the economy.

Regarding the Russia-Ukraine war, Mr. Pilkington rejected claims that the Russian military has been weakened. He said he sees no evidence of that and believes the Russian armed forces have in fact grown stronger.

By contrast, he said Ukraine now relies almost exclusively on drone warfare because a significant portion of its heavy weaponry has been destroyed. He emphasized that while drones are effective, they cannot fully replace artillery and bombing capabilities.

Finally, he said the nature of the conflict has changed. In his view, what began as a war between roughly equal sides has evolved into a situation in which a stronger military faces an asymmetric challenger.

Philip Pilkington, senior research fellow at the Hungarian Institute of Foreign Affairs (Photo: MTI)