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Economics

Putin’s Mobilization Hit Russian Economy, Central Bank Says

  • Call-up will worsen labor shortage, bruise consumer confidence
  • Economy returned to downtrend in September, economists say
Vladimir Putin
Vladimir PutinPhotographer: Mikhail Metzel/AFP/Getty Images

President Vladimir Putin’s order last month to call up 300,000 reservists to fight in Ukraine hit consumer confidence and business activity and is likely to weigh on the economy for months to come, according to economists at the Bank of Russia.

“In September, the recovery of economic activity stalled and by the end of the month, the trend started to worsen a bit,” the central bank’s research department said in a report Wednesday.