Economic & unconventional warfare against Russia

Things are getting quite ugly for Putin – who faces “elections” shortly – and Russia generally.  High on his list of irritants is the ever more visible and effective campaign of economic and psychological warfare being waged from the skies by Ukraine, adroitly conceived and impressively executed.  The initial phase of this was targeted against oil and gas infrastructure, which has had the desired two-fold effect: genuine economic harm, and extremely visible with it, in terms of both enormous and persistent plumes of black smoke, not least around major cities, and the pockets and P&Ls of all who need to buy oil products.  (We had a truly risible troll BTL a few weeks ago suggesting the Ukrainians were histrionically putting a tank of kerosene in with the drone warhead to create a more photogenic explosion.  Errr, and better combustion on the target, maybe?)

The even more cleverly conceived campaign is that being waged against the mega-depots of the WildBerries chain**, often likened to Amazon.  If anything, relative to the Russian economy WB is even more economically significant than Amazon, because a vast number of Russia’s extensive raft of small businesses uses WB as not only a route to market in marketing terms, but also as their sole storage and distribution means.  The impact is every bit as big and more, as would be systematic disruption to Amazon in the West; and, again, the smoke plumes are black, enormous, and visible to much of the population, either first-person or extensively on social meejah.  Needless to say, with enormous, combustible, static targets like refineries and depots spread across the vastness of the Russian land mass, there’s not much realistic prospect of shooting down everything that is coming their way, much as efforts are being made.  

From studiously ignoring it all in the early phases, pre-election Putin has felt obliged to make oblique references to indicate he does really know what’s going on as it affects the Russian in the street, and that it’s all being brought under control.   Right.

So much, so obvious – to even the casual watcher of the BBC News.  But there’s something else going on that you may not be aware of.

A clever little psychological campaign has been running for several months now, using social meejah in Russia to suggest that bank deposits will inevitably be frozen once the “elections” are over.  It’s been nicely understated: a word to the wise, a tap of the nose, nudge nudge wink wink.  But it’s starting to have the desired effect – the early signs of a run on the banks.  This of course could easily become a self-fulfilling dynamic, and it is reported that powers have been taken to effect a freeze whenever L’il Volodya is willing to give the word.  A very high-profile Russian economist has just been fired for having the temerity to state publicly -  in plain but very measured terms – that an economic crisis for Russia is around the corner on a scale that can be survived, but not without extreme steps being taken by the state.  

It is against this background that Putin’s posse has announced “there will be consequences” for the UK, our having supplied Ukraine with drones.  Given that we supplied Storm Shadow missiles, very much more effective (and expensive) several years ago, it cannot be said that we’ve crossed any particular red lines just recently.  The list of Putin’s red lines that we and the West generally have blithely crossed since 2022 is long indeed, so this recent huffing and puffing is clearly to be assessed in today’s precise context.  My guess would be that right now, they really don’t want any more interference on the banking front and are hoping to deter us from anything that might exacerbate the aforesaid nascent run on the banks.  Russia has long been obsessed with the dark powers they associate with the City.  Watch this space.

Finally, and anticipating what might be the trolls’ response to this little update; OK yes, Ukraine is suffering badly, too.  Of course it is!  Ukraine has been suffering badly – very badly – every day since February 2022!  As we well know.  The point is, everyday life in Russia is hurting now, in ways that can’t be ignored, even as Putin clamps down on the internet.   The introduction of a bit of symmetry is a big, big difference in the overall situation.

ND

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** As ever with big, prominent enterprises in Russia, there is a lot of politics and organised crime associated with WildBerries, by far the biggest of several such chains.  WB itself is run by very well-connected Armenian interests: its connections in very high places are just as well because it is at daggers drawn with the Chechen mafia.  The other, lesser chains have been left more or less unmolested, which stirs up Russian politics even more.