PDB Afternoon Bulletin | September 7th, 2026: Ukraine’s Drone War Costs Russia Billions & Kim Unveils Nuclear Destroyer

It's Monday, the 7th of September. Welcome to the PDB Afternoon Bulletin. I'm Mike Baker, your eyes and ears on the world stage. All right, let's get briefed. First up, Ukraine's drone war is hitting Russia right in Putin's pocketbook. New figures show the strikes are costing the Kremlin billions and impacting everything from fuel supplies to air travel. Later in the show, Kim Jong-un unveils a new destroyer that he says will be part of North Korea's nuclear response system as Pyongyang pushes to build a more dangerous navy. But first, today's afternoon spotlight. As President Trump's envoys, Steve Witkoff and Jared Kushner, wrap up a weekend of meetings with Moscow and Kiev, part of the White House's renewed efforts to restart peace talks, we're getting a clearer picture of the economic pressure that Ukraine is putting on Russia. The Wall Street Journal has pulled together new data showing that the effects of Ukraine's long-range drone campaign are now spreading through major parts of the Russian economy and increasingly being felt by ordinary Russians. The most striking acknowledgement has come from Vladimir Putin. According to the Journal, Putin said last week that Ukrainian attacks on Russia's economic infrastructure, have caused losses equivalent to roughly 1% of the country's gross domestic product, and that works out to be around $25 billion. Putin dismissed those losses, well, how cavalier, as, quote, not critical for us, end quote. Well, perhaps what he meant was not critical for Putin. He is, after all, after all these years, one of the world's richest men. But for the Russian population in general, the damage is showing up in some unexpected places. Let's start with energy. Ukraine has spent months hammering Russian oil refineries with long-range drones. Those refineries processed about 3.8 million barrels of oil per day in August. A year earlier, they were processing roughly 5 million. The result has been fuel shortages and rationing in parts of the country. Russia, one of the world's largest crude oil producers, has resorted to importing gasoline, including from India. Moscow has also loosened quality standards, so older Soviet-era refineries can increase supplies while restricting diesel exports. And according to official Russian statistics cited by the Journal, gasoline prices have risen by almost 20% since the beginning of the year. That creates another headache for Moscow, inflation. Russia's central bank has been trying to bring inflation down toward its 4% target. Instead, it remains around 6%, with higher fuel costs adding additional costs. But the disruption goes well beyond energy. Since July, Ukraine has reportedly carried out more than 30 attacks against logistics centers used by Wildberries and Ozone, as Russia's two largest e-commerce companies. Some of those attacks caused enormous warehouse fires, destroying merchandise belonging to thousands of independent merchants. A Moscow-based research firm estimates that the strikes have caused more than $10 billion, with a B, in damage to infrastructure and goods, and could produce another $12 billion in lost sales over the coming year. Those losses are beginning to raise questions about Russia's banking sector. As we've noted on the PDB before, Wildberries reportedly owes billions of dollars to state-controlled VTB Bank. VTB shares have fallen more than 25% this year, while Russians themselves are showing a growing preference for keeping cash outside of the Russian banking system. One reason is that the Russian banking system is not as good as it used to be. The Russian banking system is not as good as it used to be. Another reason is another second-order effect of the drone campaign. When Ukrainian drones approach Russian cities, authorities frequently shut down mobile internet services as a defensive measure. That can disrupt online banking and electronic payments. Russia's central bank says individuals withdrew more money from banks than they deposited during the second quarter of this year. That's a reversal of the usual pattern. And then there's agriculture. Ukrainian attacks on Russian ports, export terminals, and commercial goods are a big part of the Russian banking system. Russian banks and commercial vessels have badly disrupted grain shipments through the Black Sea and the Sea of Azov. Russian wheat exports fell by more than 50% in August compared with the same month last year. That's according to the agricultural consultancy Savikon, the lowest level since 2010. That's left more grain trapped inside Russia, pushing down prices for farmers. The governor of the Rostov region declared an agricultural state of emergency in late August, while one Russian analyst, that a wave of farm bankruptcies could follow. Commercial ships operating around the Black Sea are now even adopting improvised defenses against drones as attacks on maritime traffic intensify. And perhaps nowhere is the disruption more visible to ordinary Russians than at the airport. There were close to 1,000 temporary airport closures across Russia in August, as authorities responded to drone threats, roughly five times the number recorded six months earlier. That is a lot of canceled flights and stranded travelers. Now, this isn't a story about Ukraine suddenly collapsing the Russian economy. Russia does remain capable of absorbing enormous costs, and Putin insists the attacks will not change his military objectives. It's more a story about Ukraine finding ways to make relatively inexpensive drones create economic damage far beyond the targets they actually destroy. Refinery strikes produce fuel shortages. Drone warnings close airports. Internet shutdowns interfere with banking. Warehouse fires hit thousands of merchants. And port attacks leave Russian farmers unable to sell their grain. And all of this is becoming measurable, just as Washington makes another attempt to get Moscow and Kiev back to the negotiating table. The Kremlin said today that it does not rule out talks with Ukraine and the U.S. following the Witkow-Kushner mission, calling the latest diplomacy a small step toward peace. The question is whether billions of dollars in losses and the growing disruption being felt across Russia will eventually become enough to influence Putin. To date, he's shown no signs of compromise or legitimately looking for an off-ramp from his four-year-plus invasion. And there are indications that after the upcoming September Duma elections, Putin may well move for another mass mobilization to add some 300,000 or more troops to his war machine. All right, coming up next, North Korea is taking another step toward a nuclear-capable navy, with Kim Jong-un unveiling a new destroyer built for what he calls, quote, annihilating retaliation, end quote. How about that? I'll be right back. Hey, Mike Baker here. The President's Daily Brief is brought to you by Maud. Maud prescribes a once or twice daily modafinil drink that can keep you energized, focused, and alert. That all sounds very good. Here's the deal. Caffeine energy drinks block what's known as adenosine. Maud prescribes a once or twice daily modafinil drink that can keep you energized, it's the chemical that makes you tired. It builds up, and when caffeine wears off, well, there you go, there's the crash. Modafinil works differently. It engages pathways in your brain, dopamine, norepinephrine, histamine, and orexin, to achieve energy and alertness for 10 to 12 hours. Modafinil was invented in the 1970s, and since then, it's been used by soldiers and astronauts and pilots and anyone in high-stakes situations for concentration and alertness. Visit Maud.com, that's Maud, M-O-D, M-O-D.com for a free consultation and get 10% off your first order plus free shipping with promo code PDB. That's promo code PDB at Maud.com. See their website for important safety information, and I want to thank Maud for sponsoring the PDB. Let me take just a moment to talk about good health and taking care of yourself. Look, when it comes to taking care of your health, the liver and cholesterol levels are key concerns, but many people hesitate when they're told they may not be able to take care of themselves. So, I want to thank you for taking care of themselves. role to play in Pyongyang's nuclear response system. On Sunday, Kim traveled to the eastern port city of Wonsan for the commissioning of North Korea's newest 5,000-ton destroyer, known as the Ikangun. North Korean state media announced the commissioning today, showing Kim aboard the warship and addressing the ceremony. His daughter, Ju-ae, was also given an unusually prominent role. She stood beside her father to receive salutes and accompanied Kim aboard the new destroyer. Now, that's an important detail, considering what South Korean intelligence has been saying about her. Seoul believes the regime is continuing to take steps to position Ju-ae as Kim's eventual successor, so another prominent appearance at a major military event only adds to that speculation. But it was what Kim said about the Ikangun that carried more immediate messaging for the U.S. and its allies. According to KCNA, he said the destroyer will form part of the KCNA. North Korea's, quote, state nuclear response system, capable of delivering what he called, quote, annihilating retaliatory strikes, end quote. Kim is essentially declaring that these new destroyers will serve as platforms for what he calls sea-based nuclear deterrence. So, you say, what could that actually look like? Well, good question. The Ikangun is the second destroyer of its class to enter service. Its sister ship, the Choehyun, was commissioned roughly three months ago. Now, Pyongyang hasn't disclosed exactly what weapons will be aboard the Ikangun, but state media says it carries the same weapon systems as the Choehyun. Previous North Korean reporting has shown that Choehyun-class destroyers can carry a range of missiles, including weapons capable of carrying nuclear warheads. So, Kim is publicly bringing a class of warship capable of carrying nuclear-capable missiles into his regime's broader deterrence strategy. And where he's sending the Ikangun is also of significance. The destroyer is being deployed to waters east of the Korean peninsula, putting it on the side of North Korea, facing South Korea and Japan, where American and allied forces regularly operate. The timing is notable. The U.S., South Korea, and Japan began their annual Freedom Edge military exercise today in international waters southeast and south of South Korea's Jeju Island. Those drills will run through Friday and involve major naval and air assets. The destroyer will be from all three countries. They're specifically intended to strengthen the Allies' ability to deter and respond to North Korea's growing nuclear and missile threats. Kim also made clear that the Kongun is only one piece of a much larger naval buildup. North Korea is constructing new naval bases along its eastern coast, creating additional naval units and developing several different classes of warships. Kim says his regime will demonstrate another stage of that naval buildup in roughly eight months, though he offered no details about exactly what Pyongyang plans to unveil. He's such a tease. Of course, South Korea is watching closely. Seoul's unification ministry says it will monitor the buildup, noting that North Korea has been discussing the nuclear armament of its navy ever since the regime's Ninth Party Congress back in February of this year. And on that cheery note, that, my friends, is the PDB Afternoon Bulletin for Monday, the 7th of September. Now, if you have any questions or comments, and I hope you do, just reach out to me at pdbathefirsttv.com. And to listen to the show ad-free, it's very simple. Just become a premium member of the President's Daily Brief by visiting pdbpremium.com. I'm Mike Baker, and I'll be back tomorrow. Until then, stay informed, stay safe, stay cool. Hey, Mike Baker here with a pro tip for everybody out there who loves delicious food, right? And there's a lot of us out there who love delicious food. Have you heard of Gold Belly? Well, Gold Belly ships America's most iconic foods from legendary restaurants straight to your door anywhere in the USA. Seriously, it is that simple. Look, I've ordered all sorts of food from Gold Belly. Ribs, pulled pork, McLoon's lobster rolls from Maine. They're amazing. Cupcakes. Everything shows up fast. Perfect. Perfectly packed and absolutely delicious. It really is incredibly simple. Ordering is very easy. I've ordered from Gold Belly to feed folks at barbecues, game nights, poker evenings at the compound. The food's fantastic. Everybody's happy. Bob's your uncle. Gold Belly ships iconic Chicago deep dish from Lou Malnati's, New York cheesecake from Junior's, Texas barbecue, and meals from chefs like Ina Garten and Jose Andres. So if you're looking for that perfect gift, or you want to impress your friends and family with an epic meal the next time you host, just go to Gold Belly.com. And get 20% off your first order with promo code PDB. That's GoldBelly.com code PDB for 20% off your first order.