\u201cIn this war of attrition, we will not win the competition,\u201d he said. \u201cWe\u2019re under the illusion that everything [in Ukraine] will collapse. It hasn\u2019t, and it won\u2019t. Meanwhile, the costs we bear are mounting.\u201d<\/p>\n
These costs included rising inequality, deteriorating healthcare, and \u201cuneven development\u201d in science and technology.<\/p>\n
\u201cA social crisis could emerge, and when no one particularly expects it. But let me remind you, no one expected the February Revolution either,\u201d he said, referring to the Communist uprising of 1917.<\/p>\n
\u201cI don\u2019t believe Russia will collapse, but I\u2019m almost certain that we\u2019ll end up in a social crisis.\u201d<\/p>\n
His remarks, which were delivered in May but first reported in the weekend, clash with the Kremlin\u2019s official stance on the state of the Russian economy.<\/p>\n
Vladimir Putin has refused to acknowledge Russia\u2019s lack of progress in the war, nor its increasing toll on the country\u2019s financial health.<\/p>\n
Official data released last week suggested Russia\u2019s gross domestic product expanded 1.3pc in the second quarter from a year earlier, up from a 0.2pc contraction in the first three months of the year.<\/p>\n
But Liam Peach, a Capital Economics analyst, said in a note that Russia\u2019s economy was likely to \u201cstagnate for the foreseeable future\u201d.<\/p>\n