Putin Tells United Russia Congress Country Faces Pivotal Moment Amid Sanctions and Ukrainian Strikes

Vladimir Putin told delegates at the United Russia party congress in Moscow on June 28 that the country had reached a pivotal moment. He did not use the word war during the speech. The Russian leader's comments followed more than four years of military operations that began with the February 2022 offensive against Ukraine.

International sanctions have contributed to a budget deficit, reduced investment, tighter credit, higher inflation, labor shortages and business failures. Military spending consumed two-thirds of Russian budget revenues from January through March 2026, according to Linas Kojala, associate professor at Vilnius University's Institute of International Relations and Political Science.

Ukrainian drone attacks have hit Russia's 16 largest refineries, producing fuel shortages across 40 of the country's 89 regions.

Security concerns led organizers to scale back the annual May 9 parade marking the Soviet victory over Nazi Germany. On June 3, black smoke rose over the port of Saint Petersburg during an economic forum after another Ukrainian drone strike.