WP: Panic Has Broken Out In Russia Over Ukraine's Long-range Strikes
- 28.06.2026, 13:48
An emergency meeting was held at the Kremlin.
Against the backdrop of successful long-range strikes by the Ukrainian side, panic has set in among members of the Russian leadership. Anonymous sources note that following hints from White House chief Donald Trump about a possible tightening of sanctions against Moscow and his positive assessments of the actions of Ukrainian President Volodymyr Zelenskyy, additional signs of concern for Russia have emerged.
This is reported by The Washington Post. At the same time, Russian officials are publicly trying to downplay the impact of the Ukrainian strikes, calling the fuel problem “difficult, but under control.”
The fuel crisis and market downturn in Russia are worsening
As noted in the article, the government of Russian dictator Vladimir Putin held an emergency meeting earlier this week due to the worsening fuel crisis. The cause was a 25% drop in gasoline production between June 15 and 21, which forced dozens of Russian regions to impose restrictions on its use.
An oil depot is on fire in the village of Poltavskaya, Krasnodar Krai.
Amid growing concerns about Russia’s economic stability and a shift in Trump’s rhetoric toward Moscow, the Russian stock market has fallen by more than 13% since the beginning of June. This marks the steepest decline since September 2022, when a Ukrainian counteroffensive led to the withdrawal of Russian troops from parts of the occupied territories in northeastern Ukraine.
“There is complete uncertainty. It feels like there’s no end in sight,” said a former high-ranking Russian financial official.
At the same time, another anonymous source described the intensification of Ukrainian strikes and the worsening geopolitical outlook—against the backdrop of Donald Trump’s hints about a possible expansion of sanctions against Moscow—as “serious warning signs.”
Meanwhile, the situation in the temporarily occupied Crimea also remains difficult.
“Everyone wants to leave on foot or by bicycle as soon as they can. There will be food shortages. No one will be able to provide it,” emphasized one of the Moscow businessmen.
Smoke at one of the substations in Crimea following an attack by the Ukrainian Armed Forces.
Questions are also increasingly being raised about the Russian military’s inability to anticipate Ukraine’s sharp increase in capabilities in the field of unmanned technologies and to develop effective countermeasures in a timely manner. Some assessments indicate that the existing air defense systems are insufficient to reliably protect infrastructure
“It seems no one knows what to do to increase production. This is a dire situation that Putin and his inner circle apparently did not anticipate. … They did not prepare for a protracted war, nor are they prepared for the threat posed by drones,” the businessman asserts.
Senior Research Fellow at the “Russia–Eurasia” Center at the Carnegie Endowment Tatyana Stanovaya noted that the lack of adequate preparation is a hallmark of an overly fragmented system with a low level of coordination between the various branches of government, despite Putin’s dominant role.
“This is a perennial problem for the Russian government… the situation poses a serious challenge for the Russian economy and population. But the question is whether the government has a plan of action or an understanding of how to address this,” she emphasized.
Russia is trying to downplay the crisis, but economic pressure is mounting
Publicly, Russian officials are trying to downplay the consequences of the Ukrainian strikes. During a meeting with the Kremlin leader on the fuel crisis, Russian Deputy Prime Minister Alexander Novak stated that the situation on the domestic fuel market is “difficult, but under control.”
At the same time, Finance Minister Anton Siluanov denied that there had been a significant increase in gasoline prices, noting that any increase, if it occurred, was insignificant.
Stanova, for her part, noted that Russian officials’ blatant denial of problems only exacerbates existing economic difficulties.
“They always tend to downplay problems and minimize their importance, while focusing more on achievements. We’ll see how the government handles the fuel crisis. In some regions, it’s catastrophic,” she added.
A local semiconductor plant in Voronezh is under attack.
The deteriorating financial situation in Russia is heightening concerns in Moscow, as officials at the Ministry of Finance seek sources to cover rapidly rising military spending.
Last week, the government adopted amendments to the Budget Code that allow the Ministry of Finance to spend and raise more funds without separate approval from parliament.
Against the backdrop of Russian oil prices falling to about $50 per barrel following the ceasefire agreements between Iran and the U.S., Russia’s federal budget deficit has begun to grow rapidly. It has already exceeded the $48 billion projected for all of 2026, and as of the end of May, it had reached $83 billion—more than double last year’s level.
According to a Russian official, “the budget is bursting at the seams,” the deficit is critical, and the sovereign wealth fund is nearly depleted. A former high-ranking official in the financial sector noted that a course has effectively been set to expand borrowing, in particular by increasing the issuance of government bonds.
At the same time, concerns are growing in business circles that the government may resort to using public savings to support military spending.
“The government may try to take money by any means necessary. Everyone is thinking about how to get their money out and leave,” said a Moscow businessman.