Russian economy ‘can’t go on’ after Putin blunder

Russian President Vladimir Putin remains hellbent on taking the fight to Ukraine despite repeated setbacks for his forces. He recently announced a partial mobilisation, aimed at sending 300,000 civilians with previous military experience into Ukraine to try and turn the tide.  But various economists say this move could further damage the Russian economy which has already been heavily sanctioned by the West.General Arto Räty, a former permanent secretary of Finland’s Ministry of Defence, compared his country’s conscription system to Russia’s. He said Finland would never call up certain members of the public because of the vital role they play in the country’s economy.Speaking to Politico, he said: ‘In Finland, every company lists which employees are so vital that they can’t be released to the armed forces.’And it’s not just energy and infrastructure but companies in all sectors.’That means that we have a lot of people who have done military service who will never be called up. Russia: Putin admitted that the Russian economy is struggling (Image: Getty) Russia: Mobilised men on their way to fight in Ukraine (Image: Getty) Russia: People fleeing Russia into Finland (Image: Getty)Getting accurate numbers for how many people actually left Russia after the mobilisation is difficult, but earlier this month the Kremlin denied reports that as many as 700,000 had fled.Kari Liuhto, a professor of economics, also told Politico the mass exodus of people has meant that many of Russia’s most talented people are now gone, which will also impact the country’s economic fortunes.He added: ‘We’re already seeing a huge brain drain. The best people are leaving Russia. Already this spring, tens of thousands of tech experts left the country. And the government doesn’t have a plan for how to replace these people.’The Central Bank of Russia also gave a worrying verdict on the country’s economy last week. In its report, the bank said that the lack of people in the labour market will ‘hold back overall economic activity in the coming months.’Meanwhile, analysts at Morning Consult, a global decision intelligence company, have said that ‘September’s events will not necessarily push Russia into an immediate recession, but challenges are mounting’.DON’T MISSMedvedev unable to play new United Cup as boss confirms Russia ban [INSIGHT]Biden sends precision nuclear weapons to Europe [ANALYSIS]US says no evidence Putin’s nuclear drills are ‘cover activity’ [INSIGHT] Russia: Putin is under pressure (Image: Getty)While President Putin usually tries to play down the impact of Western sanctions on his country’s economy, earlier this week, he admitted that Russia is experiencing ‘economic difficulties’.He also conceded that Russia is struggling from a military perspective. Speaking to a newly formed Coordination Council, he said: ‘Now we are faced with the need to more rapidly resolve issues associated with providing support for the special military operation and the need to counter economic restrictions that were imposed on us, which are truly unprecedented without any exaggeration.’This week, 70,000 civilians were moved out of the city of Kherson in southern Ukraine – the next crucial battleground in the war. The city was one of four regions annexed by Russia in sham referendums earlier this month.But Ukrainian troops are closing in on the city. Russian militia commander Alexander Khodakovsky said this week: ‘We’re preparing Kherson for defence. We’re taking the civilian population out, in many ways untying our hands.’