Russian President Vladimir Putin is trying to portray Russia's weak economic performance in a positive light, unable to hide the damage that four years of war and Ukrainian long-range strikes have done to the Russian economy. Putin said Russia's GDP growth is currently around one percent, "modest" but positive, writes the "Institute for the Study of War" (ISW).
Putin acknowledged that "external pressure" and "terrorist attacks" - the Kremlin's code for Ukraine's long-range strike campaign - are affecting Russia's economic growth. It tacitly acknowledged that the Ukrainian strikes on Wildberries facilities in late July and August 2026 imposed increasing operational and financial costs on Russia, but maintained that the entire commercial infrastructure was functioning effectively.
Putin has sought to reassure the Russian public that he is taking appropriate measures to address Russia's economic challenges ahead of the upcoming State Duma elections in September.
However, the large-scale Ukrainian strikes have forced Putin to publicly acknowledge the economic effects that more than four years of war have had on Russia, as the Russian population and business community see these strikes and their consequences in ways that censorship cannot control.
Gasoline shortages continue across Russia, including in areas that Putin is trying to shield from the negative effects of the war. The Russian state-run newspaper "Izvestia" reported on August 18, citing data from the Russian mobile app "GdeBENZ" (which provides Russians with real-time fuel availability and prices) reported that gasoline was available at only 28% of all Russian gas stations, down from 41% the previous week.
Fuel availability has reportedly declined in several Russian regions that are frequent targets of long-range Ukrainian strikes, including Moscow Oblast.
The hotline for Russian state oil company "Gazprom Neft" confirmed to Russian business publication RBK that it had introduced gasoline quotas at some gas stations in Moscow City, but said it was working to increase supply.
The Kremlin's concerns about social unrest stemming from fuel shortages have led to the deployment of paramilitary forces in some areas. A Russian insider claimed on August 18 that Putin had deployed units of the Rosgvardia (Russia’s heavily militarized internal security force) to gas stations in the Moscow region.
The Kremlin expects Russia’s fuel crisis and fuel-related violence to continue. The deployment of Rosgvardia troops shows that the Kremlin has no confidence in the ability of Russia’s regular police forces to deal with the scale of fuel-related violence.
The Kremlin is also expanding the legal powers of Russia’s emergency forces, likely in part in anticipation of more widespread public unrest. On August 18, a Russian legislative committee approved a bill that would allow rescue forces of the Russian Emergencies Ministry to use physical force and firearms if the forces cannot carry out their duties through non-violent means, according to a Kremlin source and another source from the legislative committee.
The bill allows rescue forces to use firearms to prevent attempts to seize military equipment and protect Emergencies Ministry personnel.
Russian authorities have presented the bill solely as a measure to combat drones. The bill gives the Kremlin additional means to quell domestic unrest, including by violent means if necessary. The Kremlin is amending Russia's civil defense law, likely in anticipation of public discontent amid the country's ongoing gasoline shortages and possibly in anticipation of a forced mobilization that Putin is considering after the State Duma elections in September.
Russian authorities are restricting mass gatherings in Moscow's Red Square, likely out of fear of protests and internal unrest. Organizers of the military music festival "Spasskaya Bashnya" (Savior Tower) announced on August 17 that the music festival, originally scheduled for August 21-30, had been canceled "for reasons beyond the organizers' control."
The Ukrainian Center for Combating Disinformation noted that the cancellation of mass events was a consequence of protests against the decision of the Russian Supreme Court to ban the opposition party "Yabloko" from participating in the State Duma elections from September 18 to 20.
On August 19, the Verkhovna Rada (Parliament) confirmed the appointment of Yevhen Khmara as Minister of Defense of Ukraine by Ukrainian President Volodymyr Zelensky. Ukrainian President Volodymyr Zelensky appointed Khmara as acting Minister of Defense on July 16 and submitted his candidacy on August 18.
The Verkhovna Rada also confirmed Zelensky's reappointment of Andriy Sybiga, who has been Minister of Foreign Affairs of Ukraine since September 2024.
Russia and Ukraine recently exchanged prisoners of war. The Ukrainian General Staff reported on August 19 that Russia had returned 103 Ukrainian servicemen to Ukraine, most of whom were wounded or seriously ill.
The Russian Ministry of Defense (MOD) said on August 19 that Ukraine had returned 103 Russian servicemen, who were immediately sent for treatment in Belarus.