Explainer: What is behind the attempted coup in Russia and how will it affect the country’s economy?

Let’s begin with a brief chronology of events. On the evening of June 23, Yevgeny Prigozhin, the head of the Russian private military company Wagner, launched into a rant against the leadership of the Russian defense ministry. Prigozhin accused the leadership of incompetence, theft and corruption. He also stated that the official data on deaths in the “special operation in Ukraine” underestimated by up to 10 times.

A few hours later, Prigozhin said that the defense ministry forces had attacked formations of Wagner PMC, as the group of mercenaries is officially known. He declared a “March for Justice” and said he intended to “sort it out” with the defense leadership. In particular, he announced an “act of retribution” against Commander Gerasimov and Defense Minister Shoigu.

The next day, on the morning of June 24, Russian President Vladimir Putin addressed the nation with a message, urging Wagner PMC forces to surrender. Putin accused the firm’s leadership of treason and promised that the organisers of the uprising and participants would be punished accordingly. When this article was being written, PMC Wagner forces had already taken regional centres in the south of Russia – the cities of Rostov-on-Don and Voronezh – without a fight. They...

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