2 July, 01:37 PM

Kremlin preparing Russian economy for "special measures" due to war in Ukraine, reports ISW

Russian authorities are preparing the country's economy to supply the army, according to the latest report of the U.S. conflict think-tank Institute for the Study of War published on July 1.

The State Duma, the Russian parliament, introduced an amendment to the federal laws on the support of the Armed Forces of the Russian Federation, which provides for the introduction of "special measures in the economic sphere" obliging Russian enterprises (regardless of ownership) to support Russian so-called "special military and counterterrorist operations". 

The amendment would ban Russian businesses from refusing to accept government orders to support "special military operations" and would allow the Kremlin to change employee contracts and working conditions, such as forcing workers to work at night or on public holidays. 

In describing the amendment, the Kremlin noted that a so-called "special military operation" underway in Ukraine had revealed a shortage of supplies, including materials needed to repair military equipment, and said Russian officials needed to "concentrate efforts in certain sectors of the economy." 

In addition, Russian authorities are likely taking steps to integrate the Zaporizhzhya Nuclear Power Plant into the Russian energy system, contradicting Russia's previous claims that the ZNPP would sell electricity to Ukraine. 

The ISW’s key takeaways include: 

Russian forces continue efforts to encircle Lysychansk and are conducting offensive operations to the south and southwest of the city. 

Russian forces have probably not yet gained control over the T1302 Bakhmut-Lysychansk highway, a key supply line for forces in the east, but are preventing Ukrainian forces from using it. 

The Russians concentrated on regrouping and improving tactical positions north of Slovyansk

The invaders did not conduct confirmed ground assaults in the north of the Kharkiv Oblast and continued shelling Ukrainian positions north of the city of Kharkiv. 

Russian authorities persist with efforts to expand the reserve of recruits who can fight in Ukraine.

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