Russian opposition figure Milov: aggressor state's economic resilience is just a Potemkin village

Russian opposition figure Vladimir Milov told Delfi in an interview that Russia's seeming economic resilience, despite Western sanctions and heavy war losses, is merely a facade concealing serious problems and growing cracks within the system.

Milov points out that even after Russia received extra export revenue from oil price increases linked to the Iran war, the country's GDP growth over the first seven months of this year was zero. The state budget deficit has reached around 3% of GDP and continues to grow, exceeding earlier forecasts, while Russia is forced to borrow money at an interest rate of about 16% — among the highest in the world, alongside Turkey and Argentina. Milov argues that such a situation in a Western country would trigger public outrage and demands for the government's resignation.

Resources running out

The opposition figure believes Russia has so far skillfully used its last remaining resources to maintain an appearance of control, but these resources are dwindling. He urges Western observers to pay closer attention to what Russian officials themselves say about the state of the economy at international forums, such as those held in St. Petersburg and Vladivostok, where the assessment is far more pessimistic.

Milov expresses confidence that international pressure on Russia is working, even if more slowly than desired, and that it should therefore continue. He compares Russia to a large monster that cannot be stopped quickly, but says sustained pressure will eventually yield results.

Discussing a possible end to the war, Milov acknowledges it is difficult to envision while Vladimir Putin remains in power, drawing a parallel to how the Soviet Union ended the Korean War shortly after Stalin's death. The opposition figure states he is convinced Russia will one day pay reparations to Ukraine as well as compensation to the Baltic states.