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CWA # 2166, 30 June 2026
The World This Quarter
Russia (April-June 2026)

  Ramya B
Ramya B is an Associate Professor at the Department of History, Kristu Jayanti Deemed to be University, Bengaluru

The turbulence and transitions of 2026 in the first quarter continued for Russia in the second quarter. Russia, during the second quarter, faced setbacks on the battlefield, internal chaos, and economic downturn.

1. The Russian spring-summer offensive has not been very successful
Russia lost more than 280 sq km in the second quarter, with an estimated total loss of one million casualties. In May, Ukrainian drones attacked military bases, refineries, and industrial facilities at Grozny, Yaroslavl, Perm and Rostov-on-Don. It caused major disruptions in air traffic and exposed the vulnerabilities of internal defence infrastructure. Russia retaliated by launching one of the largest aerial attacks on May 23-24 with 90 missiles and 600 drones. It tested a new nuclear-capable Oreshnik intermediate-range ballistic missile (IRBM) at Bila Tserkva.

2. The structural overhaul at the Russian Ministry 
Deputy Defence Minister Oleg Savelyev stepped down and was replaced by police Colonel General Vitaly Shulika, adding to the number of replacements to nearly a third of the MoD departments and directorates. A Strategic shift from larger, rigid army structures to smaller autonomous tactical units is planned. The anti-corruption unit had indicted and detained 18 senior defence officials in May

3. Shortages due to war pressures
After the Ukrainian attacks on oil refineries and pipelines, Russia faced massive fuel shortages, leading to the rationing of petrol and diesel in 53 regions, including Moscow and St. Petersburg. Aviation fuel shortages compelled domestic airlines to cut routes and raise fares. Food prices of staples such as sugar, flour, and cooking oil increased. Restrictions on Western imports have caused further shortages of cancer drugs, insulin, industrial machinery, semiconductors, and source chips for both civilian and military use. The Euromaidan Press report suggested that due to sanctions, the production line of Russian long-range missiles may have halted, and the nation has only nine Tu-22M3 bombers left in service after a series of Ukrainian strikes and accidents.

4. Economic challenges
Russia slashed its 2026 GDP growth forecast to 0.4 per cent, a drop from the earlier estimated 1.3 per cent growth forecast by the Economic Development Ministry. Growth in real disposable incomes has collapsed to 1.6 per cent in 2026 from the 7.7 per cent recorded in 2025, while consumer spending growth has slowed to 1.2 per cent from 4 per cent in 2025. A Macroeconomic survey of the Bank of Russia revealed that inflation may settle at 5.3 per cent, and to combat this inflation, the central bank is maintaining an aggressive high key interest rate. The downgraded figures represent an official acknowledgement of five years of massive military spending. 

Concurrently, the second quarter of 2026 marked shifts in the Russian economy from evading sanctions to a structured long-term consolidation phase. The St. Petersburg International Economic Forum (SPIEF) in its June meeting presented a restructured approach showcasing strategic commitment to economic self-sufficiency within the Eurasian Economic Union through technological sovereignty, domestic capital utilisation, and synergised new trade partnerships. Vietnamese high-level representation and expanding trade partnerships through the Russia-ASEAN framework were a focal point. Russian agricultural trade with China increased by 42% in early 2026 (exceeding 4.2 billion dollars), and Russia captured 53% share of the total Indian crude Oil import market in June 2026, a record. Similarly, there is 12% increase in trade transactions with Vietnam, Venezuela and Algeria. Russia deepened its diplomatic ties with ASEAN and Africa, projecting its image as a pillar of multipolarity, denouncing Western ‘divide and rule’ tactics. -

5. Getting ready for State Duma elections
Russia is scheduled to hold its federal legislative elections in September 2026 to elect 450 members of the State Duma. The ruling party is forcing a major transition of replacing unpopular local officials with party loyalists and military supporters to maintain a guaranteed constitutional majority. As economic pressure builds, Moscow is proactively destroying the infrastructure of dissent. In June 2026, the government officially added OVD-Info, an independent human rights group, to a terror-extremist list, tightened its official grip on global messaging apps and continued the internet shutdown measures.

To Conclude: Russia in April-June 2026 
As the conflict enters its fifth summer, the Russian Federation is navigating a fragile convergence of military attrition, systemic economic degradation and aggressive domestic political sanitization. Ultimately, Moscow's survival strategy hinges on a total geopolitical recalibration, exchanging its historical European ties for deep, long-term economic dependencies across Asian, African, and Eurasian markets.

 

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