Putin admits Ukrainian drone strikes damaging Russian infrastructure but downplays economic impact

· Conflict RUSUKR
Part of Russian Economic Crisis

Russian President Vladimir Putin acknowledged Wednesday that Ukrainian drone attacks deep inside Russia are causing visible damage to infrastructure and the economy, though he insisted the consequences are not critical and do not severely affect economic growth, which he pegged at around 1 percent.

Putin ordered the government to launch a reconstruction programme for warehouses and logistics capacity damaged in the strikes. At least 20 warehouses belonging to e-commerce giant Wildberries have been hit since Ukrainian President Volodymyr Zelenskyy announced the deep-strike campaign on June 25, forcing many small vendors to shut down after losing inventory to fires.

The campaign has also struck oil refineries, triggering fuel shortages. Moscow petrol stations have reimposed purchase limits, and Deputy Prime Minister Alexander Novak said Russia has begun importing fuel and authorised production of lower-grade standards to meet domestic demand. A temporary fuel export ban was introduced in late July, running through January 2027.

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