Igor Lipsits interview

Russia’s construction sector has begun to unravel and could drag the banking system down with it, forcing the central bank to print money and risking hyperinflation above 50% a year, Russian economist Igor Lipsits told NV.

Russian economist Igor Lipsits, who now lives in Lithuania, told NV that Russia’s banking troubles and widespread utility breakdowns are not isolated accidents but the logical outcome of state-driven processes. He also explained when low oil prices could fatally undermine the federal budget.

In the final installment of NV’s in-depth conversation with exiled Russian economist Igor Lipsits, we explore whether growing economic hardship could eventually spark unrest inside Russia—and why he believes that’s a fantasy. Lipsits breaks down the uneven impact of Putin’s war economy, the burden of occupying Ukrainian territory, and why Russia’s future may increasingly resemble that of North Korea. He also explains why, despite war damage, Ukraine is better positioned for long-term recovery and growth than its aggressor.

In Part One of our exclusive interview with renowned Russian economist Professor Igor Lipsits, we explored how the Kremlin’s financial mismanagement is leading the country toward a full-scale budgetary and industrial crisis. In Part Two, Professor Lipsits delves deeper into the mechanics of Russia’s war economy, the limits of Western business engagement, the illusion of a sanctions reprieve, and the emerging impact of Ukrainian drone strikes on Russia’s fuel and energy infrastructure.

Igor Lipsits was once one of Russia’s leading economists—a professor, author, and government advisor who spent decades studying and shaping economic policy. But today, he finds himself in exile, labeled a "foreign agent" by the Kremlin, unable to return to his home country. In an exclusive interview with The New Voice of Ukraine, Professor Lipsits explains how his outspoken views on Russia’s economic failures made him an enemy of the state. He also breaks down the Kremlin’s attempts to maintain an illusion of economic stability while key industries collapse, and he warns of a financial crisis that could shake Putin’s regime.