Politico: Ukraine Has Begun To Undermine Russia's Economy On Five Different Fronts

• 22.07.2026, 15:32

For the Kremlin, this is a dangerous combination.

Ukrainian drone strikes are further intensifying pressure on the Russian economy in five particularly vulnerable areas:
1. Oil refineries; 2. Fuel; 3. Maritime logistics; 4. Grain exports; 5. Wildberries warehouses.

This is reported by Politico.

The latest sign of tension was the standoff between the Russian Ministry of Finance and the country’s largest banks, which are demanding ever-higher yields for purchasing government bonds. Yields on Russian government securities currently range from approximately 13% to 17%.

This poses a problem for the budget: the war requires funding, the deficit is growing, and borrowing domestically is becoming increasingly expensive. The Central Bank is keeping interest rates at a painfully high level in an effort to curb inflation. The key rate currently stands at 14.25%. As a result, businesses have to take out loans at even higher interest rates, and the government is competing with companies for the same limited savings.

Yanis Klugé, an analyst at the German Institute for International and Security Affairs , says that Moscow had originally planned to cut military spending this year, but instead it rose sharply, reaching nearly half of all government spending in the second quarter.

According to him, the situation in the bond market does not signal an immediate collapse, but it coincides with other signs of strain. The Russian stock index has fallen by about 30% over the past two months.

But Wildberries’ logistics centers—Russia’s largest marketplace and a vital link in the supply chain for thousands of small businesses—have become a new source of trouble. Reuters also reports that Ukrainian strikes on Wildberries’ warehouses continued this week, and the company reported new damage and injured employees.

Although Wildberries is primarily a civilian company, Politico notes that dual-use goods are sold on its platform, including body armor, drones, and night-vision devices, which is why Ukraine considers such facilities legitimate targets—especially given that Russia has been striking Ukrainian logistics centers for months.

Against this backdrop, Ukraine has sharply expanded its long-range strikes. Attacks on oil refineries have led to fuel shortages and disruptions across Russia. Strikes on ships in the Black and Azov Seas, according to the Ukrainian military, have already affected 183 vessels, complicating fuel deliveries to Crimea and grain exports. Analysts say this is a dangerous combination for the Kremlin.