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Russian Offensive Campaign Assessment, August 18, 2026

ISW · Institute for the Study of War ·

Executive Summary

A Russian state-owned bank fired its chief economist for a negative economic assessment contradicting Putin's victory theory in Ukraine, highlighting Russia's economic challenges from high defense spending and sanctions. The report also details ongoing Russian offensive operations, Ukrainian long-range strikes, and Russia's deliberate drone incursions into Moldovan and NATO airspace.

Why It Matters

This document provides a critical, near real-time assessment of the ongoing Russia-Ukraine war, including economic pressures on Russia, battlefield dynamics, and geopolitical implications like drone incursions into NATO airspace. Defense and geopolitical analysts should care about this to understand the evolving strategic landscape and Russia's internal vulnerabilities.

Key Takeaways

  • Russia's war economy is stagnating due to high defense spending, sanctions, and Ukrainian strikes, contradicting Putin's protracted war strategy.
  • Moldovan President Maia Sandu stated Russia intentionally launches drones into Moldovan and NATO airspace, indicating a deliberate escalation tactic.
  • Ukrainian forces continue long-range strikes against Russian military and industrial targets, while Russian forces maintain offensive operations across multiple fronts.

Strategic Relevance

The report highlights Russia's internal economic vulnerabilities and the increasing domestic costs of its war in Ukraine, which could impact its long-term ability to sustain the conflict. It also underscores Russia's continued aggressive posture towards NATO and its neighbors through deliberate airspace violations, posing a direct challenge to regional security.

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Key Entities

RussiaUkraineVladimir PutinAndrey KlepachVnesheconombank (VEB)MoldovaNATOVolodymyr ZelenskyInstitute for the Study of War (ISW)Kharkiv OblastDonetsk OblastZaporizhzhia Oblast

Best For

Defense AnalystsGeopolitical StrategistsPolicy MakersIntelligence AnalystsMilitary Planners

Related Themes

Russia-Ukraine WarEconomic WarfareNATO SecurityDrone WarfareMilitary StrategyGeopolitical Competition

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