Russia's National Railway System Just Collapsed - Jason Jay Smart

Ukraine has confirmed a successful strike on a Russian Kilo-class submarine docked in Novorossiysk, a move that marks a critical escalation in the naval war. The destruction of a Project 636.3 stealth submarine inside a supposed safe harbor proves that Russia can no longer protect its most valuable strategic assets. These vessels are essential for launching Kalibr missiles at Ukrainian infrastructure, and their loss creates a gap in offensive capability that the Russian defense industry cannot easily fill. The strike exposes the fragility of Russian logistics because Novorossiysk was the final fallback point for the Black Sea Fleet after it retreated from Sevastopol.

This operational failure triggers severe economic consequences for the Kremlin because a modern submarine represents a massive capital investment that is now a total loss on the balance sheet. Russia faces a tightening credit environment where high interest rates and sanctions make replacing complex military hardware prohibitively expensive. The industrial base lacks the skilled manpower and imported microelectronics required to build new stealth vessels at the necessary pace. Every destroyed asset forces the state to divert funds from the wider economy into a defense sector that is already struggling with efficiency.

The impact extends beyond the navy into the broader financial system. As military costs rise without delivering battlefield results, the ruble faces renewed pressure and sovereign reserves drain faster. Maritime insurance premiums for Russian ports will likely increase, adding friction to the export of oil and commodities. This is a systemic breakdown where the physical destruction of logistics meets the financial reality of bankruptcy. The war effort is transitioning from momentum to grinding attrition because the systems that move goods and finance repairs are failing simultaneously.

CHAPTERS:
00:00 - Intro: Ukraine Strikes Russian Submarine
01:41 - Putin’s War Economy: Rail Freight Collapse Signals Logistics Failure
03:33 - Kremlin Infighting: Survival Inflation Hits Russian Citizens Hard
05:57 - Economic Strangulation: Toxic Credit Decimates Russian Civilian Sector
07:59 - Russia’s Manpower Crisis: Extreme Worker Deficit and Exhaustion
09:59 - Moscow's Reserves Dwindle: Housing Collapse Centralizes Economic Burden
11:51 - China & India Impact: Shadow Fleet Destruction Escalates Oil Risks
12:32 - Russia's Banking Ponzi: Financial Collapse Looms in the New Year
15:12 – Outro