Russia’s Putin warns Iran war fallout could mirror Covid shock to global economy

Russian President Vladimir Putin has warned that the economic fallout from the ongoing conflict involving Iran could resemble the disruption caused by the COVID-19 pandemic, citing growing strain on global supply chains and industries. Speaking at the plenary session of the Russian Union of Industrialists and Entrepreneurs congress in Moscow, Putin said the Middle East conflict is already inflicting “significant damage” on international production and logistics networks.

He noted that entire sectors, including hydrocarbons, metals, and fertiliser production, have come under pressure due to the instability. “There are already assessments that compare them to the coronavirus pandemic,” Putin said, recalling how the pandemic slowed economic growth across all regions worldwide.

The Russian leader also cautioned against overreliance on rising oil revenues amid volatile global markets. He warned both the government and energy companies not to “squander” windfall profits through excessive spending or inflated budgets.

“Markets are unstable, and prices could swing in the opposite direction,” he said, urging what he described as “moderate conservatism” in fiscal policy. Despite external pressures and sanctions, Putin maintained that Russia has managed to preserve macroeconomic stability. He stressed that national unity and sovereignty remain critical as global tensions rise.

“Without sovereignty, it is impossible to protect fundamental interests,” he said, adding that this applies across sectors, including transport, logistics, and financial infrastructure.