ISW Russian Offensive Campaign Assessment, August 18, 2026

Key Takeaways from the ISW: Russian state-owned bank Vnesheconombank (VEB) fired Chief Economist Andrey Klepach following media reports of a negative economic assessment he offered that contradicts Russian President Vladimir Putin’s theory of victory in Ukraine. There is considerable evidence that Klepach’s assessment of the Russian economic problems aligns with reality, undermining the validity of Putin’s theory of victory. The Russian population is also reacting to the perception of economic decline in ways that may further damage Russian economic and fiscal policy. The Kremlin continues reiterating its determination to prevent Russia’s deteriorating economic realities from reducing its maximalist war aims by refusing to engage in meaningful negotiations to end the war. Moldovan President Maia Sandu stated on August 18 that Russia deliberately launches some of its drones into Moldovan and NATO airspace. Ukrainian President Volodymyr Zelensky submitted Acting Defense Minister Yevheniy Khmara’s candidacy as defense minister for Verkhovna Rada’s (Parliament) approval on August 18. Russian forces recently advanced in the Kostyantynivka-Druzhkivka tactical area, and Ukrainian forces recently advanced in the Slovyansk direction. Ukrainian forces continued their long-range strike campaign against Russia on the night of August 17 to 18. Russia launched 147 drones against Ukraine overnight. JOIN US ON TELEGRAMFollow our coverage of the war on the @Kyivpost_official. See the original here.