by Martin Armstrong,Armstrong Economics:

The line between civilian society and war is disappearing completely. That is the real story behind Russia now authorizing its central bank and Sberbank to operate anti-drone systems and arm personnel to defend financial infrastructure. A country’s banking system is no longer simply processing transactions or moving money. It is now becoming part of the battlefield itself.

Russia passed a new law allowing the central bank, Sberbank, and the Russian Cash Collection Association todeploy their own drone defense systemsafter repeated Ukrainian strikes deep inside Russian territory. Staff at these institutions can now reportedly be armed as well.

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This is what happens when modern war evolves into economic warfare. I have warned repeatedly that World War III would not resemble World War II where armies simply lined up across borders. The entire economy becomes militarized. Banks, energy grids, payment systems, telecommunications, ports, railways, factories, and data centers all become targets because modern civilization itself depends on interconnected infrastructure.

Ukraine understands this perfectly. Their drone strategy has increasingly focused on striking oil facilities, energy infrastructure, logistics centers, and economic targets deep inside Russia because they know they cannot defeat Russia conventionally in a prolonged war of attrition.

What is extraordinary here is not merely the drone attacks themselves. It is the admission that the Russian state can no longer centrally defend everything. Moscow is effectively decentralizing air defense responsibilities and telling major corporations and financial institutions: defend yourselves. That is a major shift psychologically.

The Guardian even framed it bluntly: Russia is telling its banks to “shoot down drones yourself.”

This is precisely how long wars transform societies historically. Civilian infrastructure slowly merges with military infrastructure until there is barely any distinction left. During the later stages of major conflicts, factories become military targets, railroads become military targets, ports become military targets, and eventually financial institutions themselves become military targets because war is ultimately about resources and economic survival.

Sberbank is not some small regional bank. It is effectively intertwined with the Russian state itself. Sberbank controls roughly a third of Russian banking assets and acts as a pillar of the entire domestic financial system. The Russian central bank likewise sits at the core of wartime financing, sanctions management, currency stabilization, and capital controls.

Source: SGT Report